Use the Following Scenario to Answer the Next Questions

question 62

Multiple Choice

Use the following scenario to answer the next questions:
Suppose that Canada, an industrialized nation, and Mexico, a developing nation, both produce clothes and cars. The real wage in Mexico is lower than in Canada. The countries have a free trade agreement. Each nation will find a comparative advantage.
-Which country's consumers will benefit from the free trade agreement?

• A)neither country
• B) Canada
• C) both countries
• D) Mexico
• E) not enough information to determine

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