If Canada is more productive than Mexico in all lines of production,then Canada cannot benefit from trade with Mexico.

Question

Quizplus · Accepted Answer

Even if Canada is more productive than Mexico in all lines of production, they can still benefit from trade with Mexico because of comparative advantage. For example, if Mexico is more productive at producing certain goods that Canada needs, then it would be beneficial for Canada to import those goods from Mexico instead of producing them domestically. This allows both countries to specialize in their areas of comparative advantage and increase overall output and efficiency.

If Canada Is More Productive Than Mexico in All Lines