Consider the example of trade between Taiwan and Italy described
in the tables below.
Country
# of workers needed to produce 1,000 units-
Scooters
# of workers needed to produce 1,000 units-
Laptops
Taiwan
10 workers
4 worker
Italy
20 workers
10 workers
Total Production Before Trade
Country
Current Scooters Production
Current Laptops Production
Taiwan
10,000
25,000
Italy
5,000
10,000
Total
15,000
35,000
Suppose that each country currently has 200 workers and each
decides to transfer some amount of labor...