What is the effect of a trade between Canada and Vietnam?
A) benefits for both Canada and Vietnam
B) a losing proposition for Canada because Vietnam has cheaper labour
C) trade between the two countries would be inefficient due to the high cost of transporting the goods
D) a losing proposition for Vietnam because Canadian workers are more productive

Question

Quizplus · Accepted Answer

A trade between Canada and Vietnam would likely benefit both countries as they could exchange goods and services that they produce at a lower cost, leading to improved economic outcomes for both nations. It is not necessary that one country loses and the other gains as each country has its comparative advantages and disadvantages in producing goods and services. The cost of transporting goods may be a factor that affects the trading between the two countries, but as both countries have good transportation infrastructure, this is not a significant barrier to trade.

What Is the Effect of a Trade Between Canada and Vietnam