Canada has the absolute and comparative advantage in lumber; Venezuela has the absolute and comparative advantage in oil.
What does Canada have comparative advantage in?
Canada is shown to have comparative advantage in a range of food and live animal for food, crude materials and mineral fuels. Canada has comparative disadvantage in manufactured goods.
Which country has an absolute advantage in producing lumber?
Canada
One worker in Canada can produce more lumber (40 tons versus 30 tons), so Canada has the absolute advantage in lumber.
Does Canada have an absolute advantage?
Examples of absolute advantage
The Canadian economy has an absolute advantage in agricultural goods relative to most other countries globally. This because land is relatively abundant in Canada, as well as low cost. China, Thailand, and Vietnam, on the other hand, produce and export low-cost manufactured goods.
Does Canada have an absolute advantage in maple syrup?
Canada has the absolute advantage in both goods. The US has absolute advantage in whiskey, while Canada has the absolute advantage in maple syrup.
What is Canada’s biggest economic advantage?
Canada is a wealthy nation because it has a strong and diversified economy. A large part of its economy depends on the mining of natural resources, such as gold, zinc, copper, and nickel, which are used extensively around the world.
What are two economic advantages of Canada?
In fact, Canada has one of the soundest banking systems in the world. This advantage coupled with its well-educated workforce, plenty of natural resources, and beneficial free trade arrangements make Canada a top choice for business investments.
Which country has the comparative advantage in lumber?
Canada
Canada has the absolute and comparative advantage in lumber; Venezuela has the absolute and comparative advantage in oil.
Where does most of Canadian lumber come from?
Softwood, derived from coniferous trees, supplies most of the manufacturers in these industries and is cut primarily in British Columbia. The remainder of the industry is supplied by hardwood (from deciduous trees, e.g., birch, maple, oak) found mainly in southern Ontario and Québec and the Maritimes.
Which country has the best lumber?
Canada ranks second among leading global wood product exporters
| Country | Global market share of total wood product exports | Largest type of wood product exports |
|---|---|---|
| China | 12.8% | Panels |
| Canada | 12.3% | Lumber |
| United States | 8.4% | Lumber |
| Germany | 7.6% | Lumber |
What is the absolute and comparative advantage of Canada?
Canadians have a lower opportunity cost of producing cell phones and, thus, have a comparative advantage in producing cell phones. Absolute advantage The ability to produce more of a good or service than competitors when using the same amount of resources.
Does Canada have a comparative advantage in maple syrup?
The United States has a comparative advantage in the production of honey and Canada has a comparative advantage in the production of maple syrup.
What is an example of a comparative advantage?
For example, if a country is skilled at making both cheese and chocolate, they may determine how much labor goes into producing each good. If it takes one hour of labor to produce 10 units of cheese and one of of labor to produce 20 units of chocolate, then this country has a comparative advantage in making chocolate.
Does Canadian $100 smell like maple syrup?
Many Say So : The Two-Way After a new version of the bill was introduced in 2011, the Bank of Canada heard from dozens of people who were convinced that it included a maple-scented scratch-and-sniff patch. The bank says it didn’t do that.
Why is Canada so famous for maple syrup?
Canada produces 85 percent of the world’s maple syrup. With for- ests brimming with majestic red, black and sugar maples, the country has just the right mix of cold spring nights and warm daytime temperatures to produce an abundance of the clear-coloured sap used to make maple syrup.
Is Canada running out of maple syrup?
In Canada, the country’s liquid gold – maple syrup – is running low. The Quebec Maple Syrup Producers (QMSP) – the so-called Opec of maple syrup – has released about 22m kg from its emergency larder, nearly half the total in reserve. Booming demand and a shortened harvest had caused the shortfall, QMSP said.
What are Canada’s 5 most important industries?
Biggest Industries by Revenue in Canada in 2022
- Gasoline & Petroleum Wholesaling in Canada.
- Oil Drilling & Gas Extraction in Canada.
- New Car Dealers in Canada.
- Supermarkets & Grocery Stores in Canada.
- Life Insurance & Annuities in Canada.
- Hospitals in Canada.
- Petroleum Refining in Canada. $69.2B.
- IT Consulting in Canada. $67.1B.
What are the 3 most important resources in Canada?
In Canada, natural resources such as oil, potash, uranium and wood are extracted to some of the highest environmental and labour standards in the world.
What are Canada’s 3 main industries?
Canada’s economy includes which three main industries? Service, manufacturing and natural resource industries.
Why is Canada’s economy so strong?
The country has a well-educated workforce, abundant natural resources, and a stable political environment. All of these factors contribute to making Canada an attractive destination for businesses and investors. And as a result, Canada has one of the lowest unemployment rates in the developed world.
What is the biggest economic problem in Canada?
recession
Oddly enough, the main economic problem facing Canada is not inflation. It is recession. More specifically, the gravest danger comes from the possibility of the government sinking the economy inadvertently, as part of its efforts to control rising prices.