Use the following scenario to answer the next questions:
Suppose that Canada, an industrialized nation, and Mexico, a developing nation, both produce clothes and cars. The real wage in Mexico is lower than in Canada. The countries have a free trade agreement. Each nation will find a comparative advantage.
-Which country's consumers will benefit from the free trade agreement?

Question

Quizplus · Accepted Answer

Both countries' consumers will benefit from the free trade agreement as it allows each country to specialize in producing goods where they have a comparative advantage, leading to more efficient production and lower prices for consumers in both countries.

Use the Following Scenario to Answer the Next Questions