Comment on I want to learn economics

Sat, 15 Jan 2011 05:36:38 GMT

Who's our largest trading partner? Canada. Now, honestly, what does Canada produce that a) we can't make here for the same or lower cost and b) is worth 224 billion dollars?

You're not entirely wrong about that...

Often things are made somewhere simply because that's where they were made in the past, and, as you said, it's easier to ship the goods than to set up shop somewhere else. In the case of trade between the United States and Canada, most of the relevant comparative advantages occur on the level of firms and individuals, not nations.

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