Canadian politicians who promoted the NAFTA in the early 1990s claimed that Canadian producers would have access to a larger market and thus costs would decline. Which of the following sources of the gains from trade are implied by this statement?

Question

Quizplus · Accepted Answer

The statement implies that Canadian producers would benefit from economies of scale by having access to a larger market, meaning they can produce at a lower cost per unit.

Canadian Politicians Who Promoted the NAFTA in the Early 1990s