Canada is a leading exporter of wheat.What explains the comparative advantage of Canada in wheat production?
A)positive externalities
B)investment by large firms such as Viterra and Pioneer
C)climate and soil conditions in Canada which are well-suited for wheat production
D)a large supply of unskilled labour

Question

Quizplus · Accepted Answer

Canada's climate and soil conditions are well-suited for wheat production, which gives them a comparative advantage in this area. This means that Canada can produce wheat at a lower opportunity cost than other countries, making them a leading exporter. Positive externalities and investment by large firms may contribute to increasing productivity and efficiency, but are not the main factors driving Canada's comparative advantage in wheat production. A large supply of unskilled labor may also help keep production costs low, but is not as significant as favorable natural conditions.

Canada Is a Leading Exporter of Wheat