If Canada has a surplus of paper products produced but its consumers demand more cleaning solutions, and the US has an abundance of cleaning solutions but consumers are demanding more paper products, how would trade benefit both countries?

Question

Business

Luciano

30 June, 19:59

If Canada has a surplus of paper products produced but its consumers demand more cleaning solutions, and the US has an abundance of cleaning solutions but consumers are demanding more paper products, how would trade benefit both countries?

+1

Answers (1)

Know the Answer?

Jordan Newton · Answer 1

Expanded market for their products

Explanation:

International trade is a trade involving individuals or firms in two different countries. A country that has a comparative advantage in producing a product can manufacture it in bulk and sell it to other countries.

The consumers in Canada that require cleaning products can buy them from the USA. In other words, they will be importing. Canadians can also sell excess paper products to the USA. They will be exporting.

By trading, Both Canada and the USA will get markets for the products they have in excess. Business people in this country will profit from international markets. They will increase production, which adds to their countries GDP.