If the opportunity cost of corn to wheat is 3:1 in the United States and 5:1 in France, both countries would benefit from trade if the actual terms of trade between corn and wheat were 4:1.

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This is because the United States, with a lower opportunity cost for corn (3:1), would specialize in producing corn and trade it for wheat at a rate better than its domestic opportunity cost. France, with a lower opportunity cost for wheat (since its corn to wheat ratio is higher at 5:1), would benefit from trading wheat for corn at a rate better than its domestic opportunity cost. The 4:1 trade ratio falls between both countries' opportunity costs, making trade beneficial for both.

If the Opportunity Cost of Corn to Wheat Is 3:1