Multiple Choice
Use the following scenario to answer the following questions:
Suppose that Canada,an industrialized nation,and Mexico,a developing nation,both produce clothes and cars.The real wage in Mexico is lower than in Canada.The countries have a free trade agreement.Each nation will find a comparative advantage.
-Which country's consumers will benefit from the free trade agreement?
A) neither country
B) Canada
C) both countries
D) Mexico
E) not enough information to determine
Correct Answer:
Verified
Correct Answer:
Verified
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