OUTPUT PER UNIT OF INPUT Klondike Bars Pretzels U.S. 150 75 Canada 120 40 Canada has a comparative advantage: Producing pretzels Both, since the U.S. has an absolute advantage producing both products Producing Klondike bars Niether, since the U.S. can produce more of each item An export subsidy: is a subsidy levied on imports A limit to the quantity of a good that can be imported A subsidy provided for exports A banning of all imports into a country for a particular good A form of a regulation imposed for the safety of the nation's citizens