Consider the numerical example that we used to demonstrate the thinking of Adam Smith (page 34). Assume that there is now no international trade. You are the first person to notice the differences between the countries and the possibility of international trade. How would you engage in arbitrage? How much can you profit from your first small amount of arbitrage?

Data From Numerical Example of Adam Smith 

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Productivity: Units of cloth per labor hour Units of wheat per labor hour Labor hours to make: 1 unit of cloth 1 unit of wheat In the United States 0.25 0.5 4.0 2.0 V A V In the Rest of the World 1.0 0.4 1.0 2.5