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Suppose the Nation of Canada Forbids International Trade

Question 13

Multiple Choice

Suppose the nation of Canada forbids international trade.In Canada,you can obtain a hockey stick by trading 5 baseball bats.In other countries,you can obtain a hockey stick by trading 8 baseball bats.These facts indicate that


A) if Canada were to allow trade,it would export hockey sticks.
B) Canada has an absolute advantage,relative to other countries,in producing hockey sticks.
C) Canada has a comparative advantage,relative to other countries,in producing baseball bats.
D) All of the above are correct.

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