Below Is Some Hypothetical Data for the Countries of Canada

question 42

Multiple Choice

Below is some hypothetical data for the countries of Canada and Mexico.(Assume that Canada has 10 million workers per month available and Mexico has 20 million. )
Canada's Production Possibilities
(Output in millions of bushels per month)
Mexico's Production Possibilities
(Output in millions of bushels per month)
Output Before Trade
(Output in millions of bushels per month)

-Refer to the information above to answer this question.In what product does Canada and Mexico have a comparative advantage?

• A)Neither country has a comparative advantage in either rye or beans.
• B)Canada has a comparative advantage in rye but neither country has a comparative advantage in beans.
• C)Canada has a comparative advantage in rye and Mexico has a comparative advantage in beans.
• D)Canada has a comparative advantage in beans and Mexico has a comparative advantage in rye.

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Definitions:

Merger or Acquisition

The process by which companies combine (merger) or one company purchases another (acquisition) to expand their operations or market share.

Outsourced Function

A task or operation that is performed by external parties rather than by in-house staff.

In-house

Referring to activities or operations that are carried out within an organization by its own members or resources, rather than being outsourced.

Outsourcing Arrangements

Agreements where one company hires an external party to perform services or create goods that traditionally were performed in-house.