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Country Labor/Shirt Labor/Shoe USA 1 hour 2 hours China 3 hours 4 hours Let us say that the US has 2,000 hours of labor while

Country Labor/Shirt Labor/Shoe

USA 1 hour 2 hours

China 3 hours 4 hours

Let us say that the US has 2,000 hours of labor while China has 6,000 hours of labor. If the US specializes in the good in which it has a comparative advantage in the following example, and trades 800 shirts at a TOT of 1 Shirt = 0.6 Shoe, draw the PPF, CPF and the Trade Triangle for the US and China.

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