Imagine two countries - US and China - where one unit of labor produces smart phones and clothing according to the following production function.

	U.S.	China
Smart phones	4	1
Clothing	8	6

Suppose the relative price of smart phones in the world is 3 and the US specializes in the production of smart phones. So the US produces 500 smart phones and China produces 1200 units of clothing. These are their GDP levels but one is measured in terms of smart phones and the other in terms of clothing.

1. What is the US GDP in terms of clothing? If the relative price of smart phones is 3, it means 1 smart phone is equal to 3units of clothing.
2. Using these numbers can you pinpoint the gains both countries are experiencing because of trade?