2. South Africa can produce 1,000 shoes if it specializes in shoe production. Alternatively, it can produce 500 shirts. Egypt can produce 500 shoes or 200 shirts. Explain which country will special- ize in shoe production, and which in shirt production. What is the possible range of the terms of trade?

Table 1 Price per Qd in Canada Q, in Canada Qd in Japan TV (S) 100 (000s) ('000s) (000s) Q, in Japan ('000s) 100 200 85 300 70 400 60 500 50 600 40 700 30 800 20 PARNASPR 10 100 25 20 85 50 30 70 70 401 60 80 50 50 90 60 40 100 70 30 110 801 20 120