2,500 refrigerators (a gain of 2,500 refrigerators), it will be able to consume more of both goods than before

trade. Mexico will be unambiguously better off. Conversely, the United States started off, before specialization

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19.2 • What Happens When a Country Has an Absolute Advantage in All Goods 459

and trade, producing 5,000 pairs of shoes and 20,000 refrigerators. In the example, it then shifted production

toward its comparative advantage, producing only 3,500 shoes but 26,000 refrigerators. If the United States

can export no more than 6,000 refrigerators in exchange for imports of at least 1,500 pairs of shoes, it will be

able to consume more of both goods and will be unambiguously better off.

The range of trades that can benefit both nations is shown in Table 19.11. For example, a trade where the U.S.

exports 4,000 refrigerators to Mexico in exchange for 1,800 pairs of shoes would benefit both sides, in the
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