Consider two neighboring island countries called Felicidad and Arcadia. They each have 4 million labor hours available per week that they can use to produce corn, jeans, or a combination of both. The following table shows the amount of corn or jeans that can be produced using 1 hour of labor. Country Corn(Bushels per hour of labour) Jeasn(Pairs per hour of labour)
Felicidad 4 16
Arcadia 6 12

Initially, suppose Arcadia uses 1 million hours of labor per week to produce corn and 3 million hours per week to produce jeans, while Felicidad uses 3 million hours of labor per week to produce corn and 1 million hours per week to produce jeans. Consequently, Arcadia produces 8 million bushels of corn and 48 million pairs of jeans, and Felicidad produces 15 million bushels of corn and 20 million pairs of jeans. Assume there are no other countries willing to trade goods, so, in the absence of trade between these two countries, each country consumes the amount of corn and jeans it produces.

Felicidad's opportunity cost of producing 1 bushel of corn is of jeans, and Arcadia's opportunity cost of producing bushel of corn is of jeans. Therefore, has a comparative advantage in the production of corns, and has a comparative advantage in the production of jeans.

Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. In this case the country that produces corn will produce million bushels per week, and the country that produces jeans will produce millions pairs per week.