Even though Canada manufactures textiles, China is able to produce them more efficiently. Thus, China has a(n) ______ in manufacturing textiles.

Question

Quizplus · Accepted Answer

China has a comparative advantage in manufacturing textiles, which means it can produce them at a lower opportunity cost than Canada. This makes it more efficient for China to produce textiles and Canada to focus on other products in which it has a comparative advantage. Tariffs, trade restrictions, and quotas are not relevant in this situation, as there is no mention of any government policies or regulations affecting the production or trade of textiles between Canada and China.

Even Though Canada Manufactures Textiles, China Is Able to Produce