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.
Why 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. One worker in Venezuela can produce 60 barrels of oil compared to a worker in Canada who can produce only 20.
What products does Canada have an absolute advantage in?
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.
What are 3 advantages of Canada trading with other countries?
Specialization, Comparative Advantage, and Gains from Trade.
What is an example of a country with a comparative advantage?
For example Ireland has a comparative advantage in cheese and butter due to climate and a large amount of land suitable for dairy cows. China has a comparative advantage in electronics because it has an abundance of labor.
What are Canada’s top three competitive advantages?
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- Fiscal soundness and resilient economy.
- Low cost, low tax environment.
- Highly educated and competitive workforce.
- Gateway to North America and the world.
- Environment conducive to leading-edge innovation.
- One of the world’s most stable financial sectors.
- Great place to live and prosper.
Is Canada rich in wood?
Canada has more than 160 million certified hectares, or 43 per cent of the globe’s certified forests, the most of any country in the world.
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.
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?
Canada is famous for the gorgeous scenery and uninhabited land. The views of the untouched and natural environment are breathtaking and composed of beautiful lakes and rivers. There are three oceans, mountains, plains, and some of the most attractive cities in the world, like Toronto.
Why is Canada one of the best countries in the world?
Canada ranked highly in categories like Agility, in which attributes like Adaptable, Modern, and Progressive were highly-scored, and in Quality of Life, getting a 100 score for its job market and high scores for our “Well-developed public education system” as well as safety and economic stability.
What are the top 3 products exported by Canada?
The following is a list of the top 20 exports of Canada.
List of exports of Canada.
| # | Trade item | Value |
|---|---|---|
| 1 | Crude petroleum | 75,259 |
| 2 | Cars | 47,632 |
| 3 | Refined petroleum | 18,715 |
| 4 | Aircraft, helicopters and spacecraft | 7,322 |
Why is Canada the best country for business?
In addition to a close proximity and similar culture, Canada is the world’s second-largest country by land area and has the 10th-largest economy. A well-educated workforce, wealth of natural resources, and free trade arrangements with many of the world’s major economies make this a top choice for business investments.
Which country has the comparative advantage in cars?
Japan has a comparative advantage in producing cars, since it has a lower opportunity cost in terms of grain given up.
| Workers needed to make: | ||
|---|---|---|
| One Car | One Ton of Grain | |
| U.S. | 1/4 | 1/10 |
| Japan | 1/4 | 1/5 |
What is China’s comparative advantage?
China’s comparative advantage is manufacturing, and there’s no shortage of policies that support this, from forced labor and the lack of IP protection to the coddling of state-owned companies.
What is USA comparative advantage?
The United States’ comparative advantage is in specialized, capital-intensive labor. American workers produce sophisticated goods or investment opportunities at lower opportunity costs. Specializing and trading along these lines benefit each.
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?
Canada boasts the lowest business tax burden among G7 countries. Some of the country’s tax policies specifically contribute to decreased business tax liability: Corporate tax rates are low compared to other Western countries. The territorial tax system prevents repatriation taxes on foreign profits.
What keeps Canada’s economy competitive?
More broadly, competition is central to Canada’s economic health. Competition drives economic growth, innovation, and productivity—all of which are significant factors in increasing the wealth and prosperity of all Canadians. Competition: Leads to lower prices, greater consumer choice, and higher levels of quality.
What materials is Canada rich in?
Canada is the global leader in the production of potash and ranks among the top five global producers for diamonds, gemstones, gold, indium, niobium, platinum group metals, titanium concentrate and uranium. Canada is also the world’s fourth-largest primary aluminum producer.
Is Canada rich in oil?
Canada has the third-largest proven oil reserve in the world, most of which is in the oil sands. Proven oil reserves are reserves that are known to exist and that are recoverable under current technological and economic conditions.