Canada will have an excess , which it will then. The opportunity cost of producing copper wire in
Canada is than the opportunity cost of producing it
in the rest of the world.
c. Canada will import goods for which it has an excess
at the world price. In the absence of trade, the
price of these goods would be less than the
price.
d. A rise in Canada’s terms of trade means that the average
price of Canada’s has risen compared with the
average price of Canada’s. This change is referred
to as a terms of trade.
e. The terms of trade determine the quantity of that
can be obtained per unit of.