1) Pick two real world countries, and explain a pair of goods that these countries would export and import to one another.

• Pick two countries
• Pick two goods
• Which country would export which good?
• Why would we think that country would export that good?

2) Suppose that we have the following Opportunity costs for Syrup (in terms of lumber) in the Canada and Norway.

Opportunity Cost of syrup in Canada = 3 lumber, and the opportunity cost of syrup in Norway = 6 lumber.

• Which country will export syrup and which country will export lumber?
• What will the acceptable range be for the rate of trade of syrup (in terms of lumber)?