6. Suppose Australia is a country that has a relative abundance of capital and India is a country that has a relative abundance of labour. At the moment Australia and India are not party to a free trade agreement. LO 16.2 HARD a)In which country is the ratio of the return to capital relative to the wage paid to labour likely to be highest? b)Suppose both countries have the ability to produce two commodities, cars and clothing. Predict the commodity in which each country is most likely to have a comparative advantage. c)Suppose Australia and India enter into a free trade agreement. What is likely to happen to the relative returns to capital and labour? Explain.