Figure8-2Comparative Advantage and the Production Possibility Frontier Canada’s opportunity cost of 1 bundle of auto parts in terms of airplanes is 2: for every additional bundle of auto parts, 2 airplanes must be forgone. The Mexican opportunity cost of 1 bundle of auto parts in terms of airplanes is 1/2: for every additional bundle of auto parts, only 1/2 of an airplane must be forgone. As a result, Canada has a comparative advantage in airplane production, and Mexico has a comparative advantage in auto parts production. In autarky, each country is forced to consume only what it produces: 1000 airplanes and 500 bundles of auto parts for Canada; 500 airplanes and 1000 bundles of auto parts for Mexico.