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Consider a Ricardian framework with two countries, France and Germany, and two products, beer and wine. In autarky, the relative price of wine is 1/3

Consider a Ricardian framework with two countries, France and Germany, and two products, beer and wine.

In autarky, the relative price of wine is 1/3 in France, and 2/3 in Germany.

At the trade equilibrium,

A. there is no trade between France and Germany

B. the world relative price of wine can be any value from 1/3 to 2/3, depending on the relative size of the countries.

C. French workers receive higher real wage in terms of wine

D. Germany imports beer

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