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Concept: Gains From International TradeQuestion Help

Suppose France and Portugal produce only cloth and wine. Assume that each country uses only labor to produce eachgood, and that the cloth and wine made in France and Portugal are exactly alike. The table below shows how much each country can produce of each good with one hour oflabor:

Output per Hour of Labor

Cloth

Wine

France

25

11

Portugal

4

8

Suppose that France and Portugal do not trade with each other. Each has 100 hours of labor with which to produce cloth andwine, and the countries are currently producing amounts of each good shown in the tablebelow:

Consumption with 100 Hours of Labor

Cloth

Wine

France

2,250

110

Portugal

110

580

Assume now that each country specializes in producing that good in which it has a comparative advantage. Further, assume for simplicity that one unit of cloth can be traded for one unit of wine.

If France trades 110 units of cloth for 110 units of wine with Portugal, then, withtrade, France will be able to consume the same amount of wine and

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additional units of cloth. (enter a numeric response using aninteger)