Wages in Mexico are lower than those in Canada.As a result,

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The lower wages in Mexico means that they can produce goods at a lower cost, which makes them more competitive in the international market. Canadian consumers can benefit by purchasing some of these low-cost goods from Mexico, which can lead to lower prices and increased variety of products. Imposing tariffs on imports from Mexico to raise Canadian living standards is not a viable solution as it will ultimately lead to higher prices for consumers. Comparative advantage depends on the opportunity cost of producing different goods, and the wages in Mexico do not necessarily mean that Canada has a comparative advantage in all products. Lastly, the low labour costs in Mexico do not necessarily mean that they have an absolute advantage in all products, as other factors such as technology and natural resources can also play a role.

Wages in Mexico Are Lower Than Those in Canada