This table shows how much wine and cheese can be produced in Spain and Portugal with one unit of equivalent resources. Initially there is no trade. Once trade opens up, transportation costs are assumed to be zero. $$\begin{array}{l}
\begin{array} { | l | l | l | }
\hline & \begin{array} { l }
\text { Wine } \
\text { (units) }
\end{array} & \begin{array} { l }
\text { Cheese } \
\text { (units) }
\end{array} \
\hline \text { Spain } & 2 & 8 \
\hline \text { Portugal } & 2 & 3 \
\hline
\end{array}\
\text { TABLE 33- } 5
\end{array}$$
-Refer to Table 33- 5. Once trade begins,

Question

This table shows how much wine and cheese can be produced in Spain and Portugal with one unit of equivalent resources. Initially there is no trade. Once trade opens up, transportation costs are assumed to be zero. $$\begin{array}{l}
\begin{array} { | l | l | l | } 
\hline & \begin{array} { l } 
\text { Wine } \
\text { (units) }
\end{array} & \begin{array} { l } 
\text { Cheese } \
\text { (units) }
\end{array} \
\hline \text { Spain } & 2 & 8 \
\hline \text { Portugal } & 2 & 3 \
\hline
\end{array}\
\text { TABLE 33- } 5
\end{array}$$
-Refer to Table 33- 5. Once trade begins,

Quizplus · Accepted Answer

Both countries will benefit from trade as they can specialize in the production of the good for which they have a comparative advantage, reducing the opportunity cost of the goods they import.

This Table Shows How Much Wine and Cheese Can Be