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Suppose two nations, Canada and Mexico, produce coolers and radios subject to the following production possibilities frontiers: Mexico Coolers 100 Radios 40 Canada Coolers 175

Suppose two nations, Canada and Mexico, produce coolers and radios subject to the following production possibilities frontiers: Mexico Coolers 100 Radios 40 Canada Coolers 175 Radios 50 Suppose that in each nation, resources are being used to produce some radios and some coolers. If these nations begin to specialize and trade, then employment will _____ in the Canada cooler industry. a) increase b) decrease c) neither increase nor decrease

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