Canada has a comparative advantage in producing hardwood if the Canadian price of hardwood before international trade is _______ the world price.

Question

Quizplus · Accepted Answer

If the Canadian price of hardwood is less than the world price, then it means that Canada can produce hardwood at a lower opportunity cost compared to other nations. This gives Canada a comparative advantage in producing hardwood, allowing them to export hardwood to other countries and import goods that they cannot produce efficiently.

Canada Has a Comparative Advantage in Producing Hardwood If the Canadian