Suppose trade between the United States and Canada results in a $100 billion increase in production of agricultural goods. This gain from trade will:

A)be split between the two countries, but the division may not be equal

Explanation:

These are the options for the question

A)be split between the two countries, but the division may not be equal.

B)go to Canada because it is the smaller country.

C)be split equally between the U.S. and Canada.

D)go to the U.S. because it is the larger country.

From the question we are informed about a Suppose trade between the United States and Canada which results in a $100 billion increase in production of agricultural goods.Incase of the gain from the trade, it will be split between the two countries, but the division may not be equal.

This is because the trade was between two different countries ( United States and Canada). However the percentage of the gains each countries get from the $100 billion gain may be different as a result of different factors such as demand/supply and others. The actual division of the gain cannot be known because we are not provided with more information.

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