The price of trade Suppose that Croatia and Wales both produce beets and broccoli. Croatia's opportunity cost of producing a bushel of broccoli is 6 bushels of beets while Wales's opportunity cost of producing a bushel of broccoli is 4 bushels of beets. In this scenario, Wales has a comparative advantage in broccoli production compared to Croatia. Conversely, Croatia has a comparative advantage in producing beets. Therefore, if Croatia specializes in producing beets and Wales specializes in producing broccoli, and they engage in trade, they can both benefit by exchanging their surplus goods. This exchange allows each country to obtain goods at a lower opportunity cost than if they were to produce both goods domestically without trade.
