2,500 boats, as shown in the table in Figure 17.6 "The Mutual Benefits of Trade" Roadway thus emerges with 4,500 trucks (the 7,000 it produces at B minus the 2,500 it ships) and 9,500 boats It has 500 more of each good than it did before trade The precise amounts of each good shipped will depend on demand an supply The essential point is that Roadway will produce more of the good—trucks—in which it has a comparative advantage It will export that good to a country, or countries, that has a comparative advantage in something else Figure 17.6 The Mutual Benefits of Trade Roadway and Seaside each consume more of both goods when there is trade between them The table shows values of production before trade (BT) and after trade (AT) Here, the terms of trade are one truck in exchange for one boat As shown in Panel (a) and in the exhibit’s table, Roadway exports 2,500 trucks to Seaside in exchange for 2,500 boats and ends up consuming at point C, which is outside its production possibilities curve Similarly, in Panel (b), Seaside ends up consuming at point C′, which is outside its production possibilities curve Trade Attributed to Libby Rittenberg and Timothy Tregarthen Saylor URL: http://www.saylor.org/books/ Saylor.org 897