Table 3-5

-Refer to Table 3-5.If Canada and Japan trade based on the principle of comparative advantage,what could Canada gain from exporting a car?

Question

Table 3-5
 
-Refer to Table 3-5.If Canada and Japan trade based on the principle of comparative advantage,what could Canada gain from exporting a car?

Quizplus · Accepted Answer

According to the table, Canada has a comparative advantage in producing cars, as it can produce 10 cars or 1/6 of an airplane in an hour, while Japan can only produce 4 cars or 1/3 of an airplane in an hour. Therefore, Canada can gain a maximum of 1/12 of an airplane if it exports one car to Japan.

Table 3-5 -Refer to Table 3-5.If Canada and Japan Trade Based on Japan