producing one tonne of Gemstone jewelry is one tonne of gold and vice versa. Myanmar's opportunity cost of one tonne of Gemstone jewelry is 0.5 tonne of Gold. The opportunity cost of one tonne of gold is 2 tonnes of Gemstone jewelry. Myanmar has a comparative advantage in gemstone jewelry production, because of its lower opportunity cost of production with respect to Cambodia. Cambodia has a comparative advantage over Myanmar in the production of gold , the opportunity cost of which is higher in Myanmar with respect to Gemstone jewelry than Cambodia.
To show these different opportunity costs lead to mutual benefit if the countries specialize production and trade, consider the countries produce and consume only domestically. The volumes a