Canada has the comparative advantage in producing cell phones. If it seems counterintuitive that Koreans should import cell phones from Canada even though they can produce more cell phones per hour of work, think about the opportunity cost to each country of producing each good.
Does Canada have a comparative advantage in lumber?
One worker in Canada can produce more lumber (40 tons versus 30 tons), so Canada has the absolute advantage in lumber.
What is a good example of comparative advantage?
The US has an absolute advantage in producing both cars and trucks. However, it has a comparative advantage in trucks. This is because it is better at producing them. Although it is 1.2 times better than Japan in producing cars, it is 4 times better at producing trucks.
What are the top 3 products exported by Canada?
Canada’s Major Exports
In 2019, Canada’s top three exported goods were energy products (worth $114 billion); motor vehicles and motor vehicle parts ($93 billion); and consumer goods ($71 billion). These three categories made up almost half of all exports.
What are 3 advantages of Canada trading with other countries?
Specialization, Comparative Advantage, and Gains from Trade.
What are Canada’s top three competitive advantages?
Canada’s Competitive Advantages
- Canada has a strong relationship with the United States and provides easy access to and through the U.S. market.
- Canada has an abundance of natural resources.
- Canada has a diverse economic base.
- Canada has a highly educated population.
For which good does Canada have a comparative advantage quizlet?
eg. suppose Canada and south Korea produce cell phones and televisions. Korea also has a comparative advantage in producing televisions, as they produce them at a lower opportunity cost. Canada has a comparative advantage in producing cellphones.
What is China’s comparative advantage?
By looking deeply into each country’s bilateral trade, it is not surprising that China has a comparative advantage in labor-intensive goods while the United States has a comparative advantage in the production of high-tech machinery.
What country has comparative advantage in wine?
Portugal
Portugal has a comparative advantage in the production of wine.
When a country has a comparative advantage?
A country has a comparative advantage when a good can be produced at a lower cost in terms of other goods. Countries that specialize based on comparative advantage gain from trade.
What does Canada have a big supply of?
Oil, natural gas, minerals, lumber, water… you name it, chances are Canada has it. After all, it is the second largest country in the world with an incredibly diverse array of landscapes and geology from coast-to-coast.
What are Canada’s 5 main imports?
Canada Imports – Top Categories
- Cars—$28 billion (USD)
- Car parts and accessories—$20 billion (USD)
- Trucks—$15 billion (USD)
- Crude oil—$14 billion (USD)
- Processed petroleum oil—$14 billion (USD)
- Phones—$11 billion (USD)
- Computers—$9 billion (USD)
- Medications—$8 billion (USD)
What are Canada’s 5 main exports?
Canada’s 5 biggest export products by value in 2021 were crude oil, cars, gold, petroleum gases, gold and sawn wood. In aggregate, those major exports approach one third (30.7%) of the Canada’s overall exports sales.
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 makes Canada unique from other countries?
High quality of life. With low crime rates and peaceful politics, Canada sets the bar high for peaceful living. Ranking above average for health, well-being, income, education, quality of life and health, it’s not hard to see why Canada is so attractive to international students.
What products does Canada exports?
Biggest Exporting Industries in Canada in 2022
- Oil Drilling & Gas Extraction in Canada.
- SUV & Light Truck Manufacturing in Canada.
- Sawmills & Wood Production in Canada.
- Petroleum Refining in Canada.
- Aircraft, Engine & Parts Manufacturing in Canada.
- Copper, Zinc & Lead Refining in Canada.
- Mineral & Phosphate Mining in Canada.
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 3 things Canada is known for?
What is Canada famous for?
- Scenery. Let’s face it, Canada is beautiful; and famously so.
- Ice Hockey. Canada’s national winter sport and most Canadians feel the same way about hockey as the British do about football; it’s almost a matter of life or death.
- Maple Syrup.
- Extreme politeness.
- Moose.
What does Canada do well in business?
A Beneficial Business Environment
The main driver of this high ranking is Canada’s very low corporation tax rate of just 15 percent on company profits, which is much lower than other countries like the U.S. (21 percent) and the UK (19 percent).
What is Canada popularly known for?
Canada is famous for the incredibly popular tourist destination, Niagara Falls. It’s made up of three massive waterfalls that can be seen from both the Canadian and United States borders. What is this? Known as one of the world’s natural wonders, about 28 million liters of water travels down Niagara Falls every second!
What is the #1 focus of comparative advantage?
Lower opportunity costs and higher profit margins: Nations or companies with a comparative advantage can focus their labor, capital and resources on production that requires a lower opportunity cost and therefore achieve higher profit margins.