Under what conditions can firms in a high-wage nation such as Canada compete effectively with imports from low-wage nations?

Question

Quizplus · Accepted Answer

When labour productivity is higher in Canada, it can offset the cost disadvantage of higher wages. This allows Canadian firms to produce goods more efficiently and effectively than their low-wage competitors, making them more competitive in the global market. Skill levels and tariff reductions may have an impact, but labour productivity is the most significant factor in this scenario.

Under What Conditions Can Firms in a High-Wage Nation Such