Which policy would be most effective to increase Grand Coast's comparative advantage over Toland?

Raising taxes on factories and mills could decrease production efficiency and profitability, discouraging investment and reducing overall output. This policy would likely hinder Grand Coast's ability to compete effectively in both timber and fish production, thus undermining any potential comparative advantage.

While infrastructure spending can be beneficial in the long term, it does not directly target the immediate enhancement of comparative advantage in trade. Maintaining spending might improve the overall economy, but without a focus on specific industries like fishing, it won't effectively increase Grand Coast's competitive edge over Toland.

Improving technology in timber production could enhance efficiency in that sector; however, it does not address the comparative advantage in fish production. Since the question seeks to increase Grand Coast's advantage over Toland specifically in the context of their trade goods, focusing on timber technology would not yield the desired outcome.