What can be said if Canada exports cars to France and imports cheese from Switzerland

Question

Quizplus · Accepted Answer

This is an example of comparative advantage, where Canada produces and exports what they are relatively better at producing (cars) and imports what they are relatively less efficient at producing (cheese) from Switzerland, who has a comparative advantage in producing cheese. This exchange benefits both countries as they are able to obtain the goods they want at a lower opportunity cost.

What Can Be Said If Canada Exports Cars to France