The following table shows production possibilities for Thailand and Chile, assuming that there is no trade. Each number represents units of product produced per hour, if all resources are fully employed.
|
Product |
Thailand |
Chile |
|
Cell Phones |
300 |
200 |
|
Shirts |
500 |
1000 |
Suppose that workers in both nations work a ten-hour day and split their time evenly between producing the two goods.
Total world output of cell phones will be 2500.
Total world output of shirts will be 7500.
If Thailand specializes in cell phones and Chile specializes in shirts,
total production of cell phones will be 3000 and total production of shirts will be 10000.
If Thailand works for 5hours then
cell phone productions=1500 and Shirts productions=2500
and Chile will produce 1000 cell phones and 5000 shirts
After specialisation,Chile will produce shirt=10000 and Thailand will produce cell phones=3000
The following table shows production possibilities for Thailand and Chile, assuming that there is no trade....