Use the Following Scenario to Answer the Following Questions

question 17

Multiple Choice

Use the following scenario to answer the following 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 benefits from this free trade agreement?

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

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Definitions:

Government's Possession

Property, sites, or assets that are owned and managed by a governmental body.

Securities and Exchange Commission (SEC)

An independent U.S. federal agency responsible for regulating the securities industry, enforcing federal securities laws, and ensuring that markets operate fairly and efficiently.

Independent Agency

is a government body established to regulate and oversee specific areas of public policy, distinct from executive departments.

Judicial Review

The process by which courts examine government actions to determine if they conform to the constitution or other legal standards.