Suppose the United States exports cars to Canada and imports bananas from Mexico.This situation suggests
A) the United States has a comparative advantage relative to Canada in producing cars, and Mexico has a comparative advantage relative to the United States in producing bananas.
B) the United States has a comparative advantage relative to Canada in producing bananas, and Mexico has a comparative advantage relative to the United States in producing cars.
C) the United States has an absolute advantage relative to Canada in producing cars, and Mexico has an absolute advantage relative to the United States in producing bananas.
D) the United States has an absolute advantage relative to Mexico in producing bananas, and Canada has an absolute advantage relative to the United States in producing cars.
Correct Answer:
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