let's construct a simplified theoretical example
Taylor Street the point imagine for a moment
the we live in a world where there only two countries
South Africa and Japan ap
at both countries have different capabilities to produce to products
wheat and DVD's now
over a certain time period South Africa can either produce
fifty five bags of wheat or 11 DVD's
using all their resources Japan on the other hand
can either produce 18 bags of wheat was seventy two DVD's
using all the available inputs that they have soap
knowing that each country must choose how to allocate its resources between
the production at these two goods
does it make sense for South Africa to produce any DVD's
the answer is
not Japan is obviously much more efficient in the production of DVD's in
South Africa