(3 marks) Which country is capital abundant relative to the other country? Explain why. (3 marks) In the diagram below, draw the relative supply of cars/rice for each country in autarky. Explain any difference across countries. (Hint: Remember that relative prices reect opportunity costs). RDGER=RDCAM QC/QR Now, suppose Germany and Cambodia are free to trade. (1 mark) In the graph depicted in point (b) above mark the approximate relative price under free trade. Describe the patterns of specialisation and trade. (3 marks) At free trade relative price, does Germany produce more or fewer cars relative to rice in comparison with autarky? Does Cambodia produce more or fewer cars relative to rice in comparison to autarky? Mark these points of production at free trade price on the graph depicted in point (b)