Australia exports wine to Canada,and Canada exports wine to Australia.This is a(n)

Question

Quizplus · Accepted Answer

This trade pattern is likely due to economies of scale and product differentiation, as both countries may have unique wine production methods and preferences. It does not violate the law of comparative advantage, nor is it a failure to take advantage of specialization. It also does not fit within the Heckscher-Ohlin theory or demonstrate inefficiency in trade patterns.

Australia Exports Wine to Canada,and Canada Exports Wine to Australia