Trade atFrance's Domestic Price. 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 ofland, labor,capital, andtechnology), China can produce either 8 containers of toys or 6 cases of wine. France can produce either 2 cases of toys or 6 cases of wine.Thus, a production unit in China is five times as efficient compared to France when producingtoys, but equally efficient when producing wine. Assume at first that no trade takes place. China allocates 800 production units to building toys and 200 production units to producing wine. France allocates 200 production units to building toys and 800 production units to producing wine.

a. What is the production and consumption of China and France withouttrade?

b. Assume completespecialization, where China produces only toys and France produces only wine. What would be the effect on totalproduction?

c.France's domestic price is 2 containers of toys equals 6 cases of wine. Assume China produces 8,000 containers of toys and exports 400 containers to France. Assume France in turn produces 6,000 cases of wine and exports 1,200 cases to China. What happens to total production andconsumption?

a. What is the production and consumption of China and France withouttrade?

Calculate the production and consumption of China and France without tradebelow:(Round to the nearestinteger.)

Production if there is no trade

Toys

CHINA

Allocated production units to

Produces and consumes (output per unit units allocated)

FRANCE

Allocated production units to

Produces and consumes (output per unit units allocated)

Total production and consumption across both countries