Determine whether the statements regarding international trade are true or false. The presence of international trade can make some individuals worse off than if their nation were closed to trade. In order for some countries to gain from specialization and international trade, other countries must be harmed by it. When using all resources in the production of beef or oil, Canada and Kuwait can produce the given quantities. Canada can produce 2 tons of beef per month. Kuwait can produce 1 ton of beef per month. Canada can produce 1 ton of oil per month. Kuwait can produce 3 tons of oil per month. Based on this information, Canada has a comparative advantage in beef production.

A comparative advantage occurs where one economy has the ability to produce goods and services at a lower opportunity cost than the other economy is comparison.

The small potential return that is ignore by the economy with low opportunity cost ,puts the country at a comparative advantage case.

In the question

tons of beef per month tons of oil per month

Canada 2 1

Kuwait 1 3

Based on this information, Kuwait can forfeit producing beef to producing more oil, thus Kuwait has a comparative advantage in oil production.

Canada can abandon producing oil to producing more beef, thus Canada has a comparative advantage in beef production.