Good does canada have a comparative advantage

Reference no: EM13534427

Using the data in the table, answer the following question:

a. For which good does Canada have a comparative advantage?

b. For which good does Italy have a comparative advantage?

c. What might be a set of favorable terms of trade for the two countries?

d. Prove that both countries would be better off in the specialization-trade case than in the no-specialization-no-trade case.

Reference no: EM13534427

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