The United States produces 8 units of lumber and 8 automobiles. Canada produces 4 units of lumber and 2 automobiles. Which country has an absolute advantage in producing lumber? Which country has an absolute advantage in producing automobiles? Which country has a comparative advantage, if any, in producing lumber?

Exploring Economics
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ISBN:9781544336329
Author:Robert L. Sexton
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Chapter28: International Trade
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The United States produces 8 units of lumber and 8 automobiles. Canada produces 4 units of lumber and 2 automobiles. Which country has an absolute advantage in producing lumber? Which country has an absolute advantage in producing automobiles? Which country has a comparative advantage, if any, in producing lumber?

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