the original consumption possibilities boundary tt, there are
points on the new boundary that allow more consumption
of both goods—for example, compare points b and f. Notice
also that, except at the zero-trade point d, the new
consumption possibilities boundary lies everywhere above the
production possibilities boundary.
The benefits of moving from a no-trade position, such as point
a, to a trading position, such as points b or f, are the gains from
trade to the country. When the production of good Y is
increased and the production of good X decreased, the country
is able to move to a point, such as f, by producing more of
good Y, in which the country has a comparative advantage, and
trading the additional production for good X.
t't'