As long as the domestic exchange ratio of the United States and that of Canada are identical, the United States should trade with Canada even though the United States may have absolute advantage in all products.
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Q1: Trade is a zero sum game.
Q2: The principle of absolute advantage states that
Q3: If one nation has absolute advantage for
Q5: If the domestic exchange ratio of the
Q6: According to the principle of relative advantage,
Q7: Relative production costs can determine whether trade
Q8: The principle of relative advantage suggests that
Q9: Because of trade, the two different domestic
Q10: International trade is a function of the
Q11: A country that has absolute advantage in
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