If Canada imports fishing poles from Mexico and Mexico imports ...

[yoroshambo]

If Canada imports fishing poles from Mexico and Mexico imports bacon from Canada, which of the following would explain this pattern of trade?
 
  A) The opportunity cost of producing fishing poles in Canada is higher than the opportunity cost of producing bacon in Mexico.
  B) Mexico has a higher opportunity cost of producing fishing poles than Canada, and Canada has a higher opportunity cost of producing bacon.
  C) Mexico must have an absolute advantage in producing fishing poles and Canada must have an absolute advantage in bacon.
  D) Mexico has a lower opportunity cost of producing bacon than Canada and Mexico has a comparative advantage in producing fishing poles.

Question 2

Explain why privatization can help the economy become more efficient.
 
  What will be an ideal response?

[Jevvish]

Answer to Question 1

A

Answer to Question 2

Under a system of private ownership, owners reap the rewards of their successes and suffer the consequences of their failures. Private ownership provides a strong incentive for efficient operation, innovation, and hard work that is lacking when ownership is centralized and profits are distributed to the people.