1.Assume that the comparative-cost ratios of two productsbaby formula and tuna fishare as follows in the nations of Canswicki and Tunata: Canswicki: 1 can baby formula 2 cans tuna fish Tunata: 1 can baby formula 4 cans tuna fish.

a.In what product should each nation specialize?

b.Which of the following terms of trade would be acceptable to both nations: (a) 1 can baby formula 2 cans tuna fish; (b) 1 can baby formula 1 can tuna fish; (c) 1 can baby formula 5 cans tuna fish?