Suppose That Canada and Japan Are the Only Two Countries

Multiple Choice

Suppose that Canada and Japan are the only two countries and each can produce two goods--cellular phones and cars.If Canada has an absolute advantage in cellular phones and Japan has an absolute advantage in cars,we know that

A) there will be no trade because neither country has a comparative advantage in either good.
B) one of the countries will have a comparative advantage in cellular phones,but we can't tell which one without more information.
C) Canada must have a comparative advantage in cars and Japan in cellular phones.
D) Canada has a comparative advantage in cellular phones and Japan has a comparative advantage in cars.