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-(Table: Production Possibilities for the United States and Canada)Use Table: Production Possibilities for the United States and Canada.Both nations can produce cars and lumber.If these nations were to specialize and trade,the United States would benefit from trade by exporting 1 million cars to Canada in exchange for _____ million board feet of lumber.

Question

Use the following to answer question: 
-(Table: Production Possibilities for the United States and Canada)Use Table: Production Possibilities for the United States and Canada.Both nations can produce cars and lumber.If these nations were to specialize and trade,the United States would benefit from trade by exporting 1 million cars to Canada in exchange for _____ million board feet of lumber.

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The United States should specialize in producing cars if it has a comparative advantage in cars, meaning it can produce cars at a lower opportunity cost than Canada. If the U.S. exports 1 million cars, it should receive 2 million board feet of lumber in exchange, assuming this is the agreed upon trade ratio that reflects the comparative advantage.

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