ry of an American company.
The processed food in shortest supply in Cuba is canned milk (Rudolph, 1987). The Carnation Company, headquartered in Los Angeles, is particularly well suited to establish a Cana dian subsidiary for the purpose of producing canned milk pro ducts for export to Cuba. Canadian raw milk production is more than sufficient to support such an operation.
International trade occurs because of differences in costs of production between countries, and because it increases the economic welfare of trading partners, by widening the range of 3goods and services available for consumption. Over the years, three significant economic theories relative to
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