4. If Colombia decided to specialize in the production of coffee, it could trade coffee to Canada in exchange for computer software.

This process illustrates gains from specialization and trade. Both countries have a comparative advantage in producing one particular good. Colombia has ideal coffee-

growing conditions, and Canada has a workforce that is more adept at writing software. Since each country specializes in what it does best, both countries are able to produce more value than what they could produce by trying to make both products on their own.