Suppose the nation of Canada forbids international trade. In Canada, you can obtain a hockey stick by trading 5 baseball bats. In other countries, you can obtain a hockey stick by trading 8 baseball bats. These facts indicate that:
1. if Canada were to allow trade, it would export hockey sticks.
2. Canada has an absolute advantage, relative to other countries, in producing hockey sticks
3. Canada has a comparative advantage, relative to other countries, in producing baseball bats.
4. All of the above are correct.
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Home » Business » Suppose the nation of Canada forbids international trade. In Canada, you can obtain a hockey stick by trading 5 baseball bats. In other countries, you can obtain a hockey stick by trading 8 baseball bats. These facts indicate that: 1.