Question
4- According to the Canadian International Merchandise Trade Database from Statistics Canada in 2019, Canada sold cereal worth $935.8 million to China and bought cereal
4- According to the Canadian International Merchandise Trade Database from Statistics Canada in 2019, Canada sold cereal worth $935.8 million to China and bought cereal worth only $7.4 million from China. During the same year, however, Canada bought $6,275.8 million worth of textiles and textile articles from China but sold only $121.3 million worth of textiles and textile articles to China. Using what you have learned about how trade is determined by comparative advantage, answer the following questions.
a) Which country has the comparative advantage in cereal production? In production of textiles and textile articles? b) Can you determine which country has the absolute advantage in cereal production? In production of textiles and textile articles?
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