Canada has a comparative advantage in producing nickel, which the United States imports. A fall in the world price increases U.S. imports and increases U.S. consumer surplus and total surplus. The United States has a comparative advantage in producing natural gas, so the fall in the world price decreases U.S. production and exports. U.S. producer surplus decreases, consumer surplus increases, but producers lose more than consumers gain. Total surplus decreases.

Figure 2