If wages in Mexico are lower than those in Canada,

Question

Quizplus · Accepted Answer

The lower wages in Mexico indicate that they may have a comparative advantage in producing goods that require low-skilled labour, such as textiles or agricultural products. Canadian consumers can benefit by purchasing these low-cost goods from Mexico, while Canadians can continue to focus on producing goods that require high-skilled labour, where they may have a comparative advantage over Mexico.

If Wages in Mexico Are Lower Than Those in Canada