16. (International Trade) a) Explain the importance of international trade why nations trade with each other. b) Explain the theory of Absolute Advantage (i.e. Page 488) c) Explain the theory of Comparative Advantage (i.e. Page 491) d) Assume that two countries have the following Production Possibility Curves. India Thailand Shrimp 100 600 Wheat 900 400 d.1) Illustrate in a diagram the Production Possibility Curves of both countries? d.2) In what product India has an Absolute Advantage? d.3) In what product Thailand has an Absolute Advantage? e) Assume that two countries have the following Production Possibility Curves. India Canada Paper 100 200 Steel 200 500 e.1) Illustrate in a diagram the Production Possibility Curves of both countries? e.2) In what product India has a Comparative Advantage? e.3) In what product Canada has a Comparative Advantage? Hint: Read section the sections of the Theory of Absolute Advantage and Comparative Advantage and on the texbook .Check the comprehensive problem of Chapter 13th