A high percentage of Canada's GDP is generated by the production and export of wheat.That's both good news and bad news for Canada. The good news is
A) that other countries have less of a target to retaliate on but the bad news is that they are most likely to retaliate
B) that Canada can concentrate on principally one good but the bad news is that its comparative advantage changes when its absolute advantage changes
C) that Canada can concentrate on principally one good but the bad news is that its absolute advantage changes when its comparative advantage changes
D) that Canada gets substantial gains from trade but the bad news is that other countries may retaliate against all Canadian exports
E) that Canada gets substantial gains from trade but the bad news is that price changes in wheat can erode much of the gains
Correct Answer:
Verified
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