Question

Why does Canada export lumber, while the United States exports wheat and China exports labor-intensive manufactured goods? Each is producing what it most efficiently produces and all benefit from their doing so. Each has imposed tariffs on what others produce so that it can subsidize its industries. Each is required by the World Trade Organization (WTO) to concentrate on producing what others need, not just what they need. Their command economies depend on specialization.

Answer 1

Canada and the United states are not command economies, which means that there is no central planning of their economy. This means that they produce what is most needed and most likely guaranteed to be sold with a profit. An additional aspect is that they produce what they can easily produce due to for example their specific climate.

The correct answer is: Each is producing what it most efficiently produces and all benefit from their doing so.

Answer 2

Each exports what is easier to produce and they import what the need