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Consider the example of trade between the United States and Japan described in the tables below. Country # of workers needed to produce 1,000 units-
Consider the example of trade between the United States and Japan described in the tables below. Country # of workers needed to produce 1,000 units- Cars # of workers needed to produce 1,000 units- RVs United States 3 workers 2 workers Japan 4 workers 3 workers Total Production Before Trade Country Current Car Production Current RV Production United States 16 , 000 24 , 000 Japan 12 , 000 16 , 000 Total 28 , 000 40 , 000 Suppose that each country currently has 96 workers and each decides to transfer some amount of labor toward its area of comparative advantage. The United States transfers 15 workers away from cars toward producing RVs. Japan transfers 21 workers away from RVs toward producing cars
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