Multiple Choice
Suppose Mexico has a comparative advantage relative to Canada in clothing manufacturing and Canada has a comparative advantage in producing agricultural products.Which of the following options is most likely to occur?
A) Mexico and Canada will not trade agricultural products or clothing.
B) Mexico will sell clothing to Canada and Canada will sell agricultural products to Mexico.
C) Mexico will sell agricultural products to Canada and Mexico will buy clothing from Canada.
D) Mexico will sell clothing to Canada but not buy any agricultural products from Canada.
Correct Answer:
Verified
Correct Answer:
Verified
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