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The Next Questions Refer to the Following

Question 3

Multiple Choice

The next questions refer to the following.
Suppose Canada can produce either 120 units of goods, 80 units of services, or any linear combination thereof. Mexico can produce 90 units of goods, 50 units of services, or any linear combination thereof.
-International trade under these conditions


A) cannot benefit either country
B) can only benefit Mexico
C) can only benefit Canada
D) can benefit both countries if Canada exports goods and imports services
E) can benefit both countries if Canada exports services and imports goods

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