If the opportunity cost of manufacturing machinery is lower in Canada than in Britain and the opportunity cost of manufacturing sweaters is higher in Canada than in Britain,then Canada will:

Question

Quizplus · Accepted Answer

Canada has a comparative advantage in manufacturing machinery due to its lower opportunity cost, so it will export machinery to Britain. Conversely, since the opportunity cost of manufacturing sweaters is higher in Canada, it will import sweaters from Britain.

If the Opportunity Cost of Manufacturing Machinery Is Lower in Canada