Suppose that Botoga completely specializes in the production of the good in which it has a comparative advantage, producing only that good. It will produce
. Suppose also that Euclidia does not specialize and uses 18,000 hours of labor to produce jeans and 6,000 hours of labor to produce corn. It will produce
pairs of jeans and
bushels of corn.
Suppose Botoga and Euclidia agree to trade with each other, exchanging 410 pairs of jeans for 1,230 bushels of corn. In particular, Botoga will export the goods it produces, and Euclidia will export the goods that Botoga does not produce.
With trade, Botoga will jeans and corn. Euclidia will jeans and corn.
When Botoga specializes and Euclidia still produces the combination of goods using 18,000 hours of labor to produce jeans and 6,000 hours of labor to produce corn, the total production of jeans becomes
pairs per week, and the total production of corn becomes
bushels per week.