Comparative Advantage and International TradeIn this hypothetical example, Canada and the United States produce only two goods: pork and aircraft. Aircraft are measured on the vertical axis and pork on the horizontal axis. Panel (a) shows the U.S. production possibilities curve. It is relatively flat, implying that the United States has a comparative advantage in pork production. Panel (b) shows the Canadian production possibilities curve. It is relatively steep, implying that Canada has a comparative advantage in aircraft production. Just like two individuals, both countries gain from specialization and trade.