Brazil and Canada trade two goods: bananas and ice pops. Brazil has a comparative advantage in banana production. This means that:
Canada has a comparative advantage in ice pop production. Brazil also has a comparative advantage in ice pop production. neither country has a comparative advantage in ice pop production. both countries have a comparative advantage in ice pop production.
If Brazil has a comparative advantage in banana production, it means that Brazil can produce bananas at a lower opportunity cost compared to Canada. Consequently, this implies that Canada must have a comparative advantage in the production of the other good, which in this case is ice pops.
Therefore, the correct statement is:
Canada has a comparative advantage in ice pop production.