Consider two countries, Italy and France, both of which use the same basic technology.

): Consider two countries, Italy and France, both of which use the same basic technology. In both countries, the number of workers required to produce 1 soccer ball is 3, while 2 workers are required to produce 1 bottle of perfume. In both countries the number of machines required to produce 1 soccer ball is 1, while 4 machines are required to produce 1 bottle of perfume. Full employment prevails in both countries. Italy has 30 workers and 20 machines. France has 30 workers and 30 machines. With free trade, the price of a soccer ball is 13 Euros and the price of a bottle of perfume is 12 Euros.