Specialization. This problem illustrates an example of trade induced by comparative advantage. It assumes that China and France each have 1,000 production units. With one unit of production (a mix of land, labor, capital, and technology), China can produce either 18 containers of toys or 8 cases of wine. France can produce either 3 cases of toys or 8 cases of wine. Thus, a production unit in China is six times as efficient compared to France when producing toys, but equally efficient when producing wine. Assume at first that no trade takes place. China allocates 750 production units to building toys and 250 production units to producing wine France allocates 250 production units to building toys and 750 production units to producing wine. a. What is the production and consumption of China and France without trade? b. Assume complete specialization, where China produces only toys and France produces only wine What would be the effect on total production? TUBE a. What is the production and consumption of China and France without trade? Calculate the production and consumption of China and France without trade below: (Round to the nearest integer.) Production if there is no trade Toys Wine CHINA Allocated production units to Produces and consumes FRANCE Allocated production units to Produces and consumes Total production and consumption across both countries Specialization. This problem illustrates an example of trade induced by comparative advantage It assumes that China and France each have 1,000 production units. With one unit of production (a mix of land, labor, capital, and technology), China can produce either 18 containers of toys or 8 cases of wine France can produce either 3 cases of toys or 8 cases of wine. Thus, a production unit in China is six times as efficient compared to France when producing toys, but equally efficient when producing wine. Assume at first that no trade takes place China allocates 750 production units to building toys and 250 production units to producing wine, France allocates 250 production units to building toys and 750 production units to producing wine. a. What is the production and consumption of China and France without trade? b. Assume complete specialization, where China produces only toys and France produces only wine. What would be the effect on total production? KONE b. Assume complete specialization, where China produces only toys and France produces only wine. Calculate the production and consumption of China and France with complete specialization below (Round to the nearest integer) Production if there is complete specialization Toys Wine CHINA Allocated production units to Produces and consumes FRANCE Allocated production units to Produces and consumes Total production and consumption across both countries What would be the effect on total production? (Select the best choice below.) O A. The combined production of both countries is 18,000 containers of wine, 3.750 more containers of wine than before specialization, with toys production remaining unchanged. O B. The combined production of both countries is 18,000 containers of toys, 3,750 fewer containers of toys than before specialization, with wine production remaining unchanged O C. The combined production of both countries is 18,000 containers of wine, 3.750 fewer containers of wine than before specialization, with toys production Specialization. This problem illustrates an example of trade induced by comparative advantage. It assumes that China and France each have 1,000 production units. With one unit of production (a mix of land, labor, capital, and technology), China can produce either 18 containers of toys or 8 cases of wine, France can produce either 3 cases of toys or 8 cases of wine. Thus, a production unit in China is six times as efficient compared to France when producing toys, but equally efficient when producing wine. Assume at first that no trade takes place. China allocates 750 production units to building toys and 250 production units to producing wine. France allocates 250 production units to building toys and 750 production units to producing wine a. What is the production and consumption of China and France without trade? b. Assume complete specialization, where China produces only toys and France produces only wine. What would be the effect on total production? Production if there is complete specialization Toys Wine CHINA Allocated production units to Produces and consumes FRANCE Allocated production units to Produces and consumes Total production and consumption across both countries What would be the effect on total production? (Select the best choice below.) O A. The combined production of both countries is 18,000 containers of wine, 3,750 more containers of wine than before specialization, with toys production remaining unchanged. OB. The combined production of both countries is 18,000 containers of toys, 3,750 fewer containers of toys than before specialization, with wine production remaining unchanged. O c. The combined production of both countries is 18,000 containers of wine, 3,750 fewer containers of wine than before specialization, with toys production remaining unchanged. D. The combined production of both countries is 18,000 containers of toys, 3,750 more containers of toys than before specialization, with wine production remaining unchanged