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Suppose Canada could produce all goods and services more cheaply than all other countries. In that case,

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Suppose Canada could produce all goods and services more cheaply than all other countries. In that case,

Suppose Canada could produce all goods and services more cheaply than all other countries. In that case,

▸ no trade would occur because Canada would have an absolute advantage in producing everything.

▸ trade would probably take place because Canada would still have a comparative disadvantage in producing some goods.

▸ no trade would occur because Canada would not have a comparative advantage in producing anything.

▸ trade would occur but only if other countries also have an absolute advantage.

▸ trade would occur but only if other countries subsidize the import of Canadian goods and services.

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Microeconomics

Edition: 17^th

Author: Ragan

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