If Canada Imports Fishing Poles from Mexico, and Mexico Imports

Multiple Choice

If Canada imports fishing poles from Mexico, and Mexico imports bacon from Canada, which of the following would explain this pattern of trade?

A) Mexico has a lower opportunity cost of producing bacon than Canada, and Mexico has a comparative advantage in producing fishing poles.
B) The opportunity cost of producing fishing poles in Canada is higher than it is in Mexico, and the opportunity cost of producing bacon in Mexico is higher than it is in Canada.
C) Mexico must have an absolute advantage in producing fishing poles, and Canada must have an absolute advantage in bacon.
D) Mexico has a higher opportunity cost of producing fishing poles than Canada, and Canada has a higher opportunity cost of producing bacon.