Assume,for Canada,that the domestic price of tomatoes without international trade is higher than the world price of tomatoes.This suggests that,in the production of tomatoes,

Question

Quizplus · Accepted Answer

If the domestic price of tomatoes is higher than the world price, it means that Canada is less efficient in producing tomatoes compared to other countries, which implies that other countries have a comparative advantage over Canada in tomato production. Therefore, it is more likely that Canada will import tomatoes from other countries rather than exporting them.

Assume,for Canada,that the Domestic Price of Tomatoes Without International Trade