If China has an absolute advantage in producing everything at lower cost then Canada, mutually benefical trade is impossible.

Question

Quizplus · Accepted Answer

Even if China has an absolute advantage in producing everything at a lower cost than Canada, there can still be mutually beneficial trade if both countries specialize in producing the goods that they have a comparative advantage in and trade with each other. This can increase efficiency and lead to gains from trade for both countries.

If China Has an Absolute Advantage in Producing Everything at Lower