If it takes Canadian workers fewer hours to produce every good than it takes French workers, Canada cannot gain from trade with France.

Question

Quizplus · Accepted Answer

Canada can still gain from trade with France, even if Canadian workers are more productive than French workers. This is because trade allows countries to specialize in producing goods in which they have a comparative advantage, and then exchange them for goods produced by other countries. By specializing according to their respective strengths, both Canada and France can achieve a higher level of productivity and efficiency overall.

If It Takes Canadian Workers Fewer Hours to Produce Every