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1. The Ricardian Model | SuppOSe that there are two countries in the world Home and Foreign and two goods Tshirts and computers. Imagine that

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1. The Ricardian Model | SuppOSe that there are two countries in the world Home and Foreign and two goods Tshirts and computers. Imagine that the unit labor requirements of the two countries for both goods are given as follows: Home 1 2 Foreign 6 3 To address the following questions, you may refer to a diagram, but you are not required to do so: a) Which country has an absolute advantage in the production of Tshirts. Why? b) Which country has a comparative advantage in the production of T~shirts. Why? c) Imagine that the relative price of computers, Pc/Pt =1. Which goods will be produced in which country

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