Consider the Ricardian model of trade and, to answer the parts below, use the following table that describes how many units of labour are required to make one computer and one sack of rice. Suppose that both countries, North (N) and South (S) have 600 units of labour each. One computer in North is 10, in South is 40, One stack of rice in North is 15, in South is 20 a) Which country has a comparative advantage in computers? Which country has a comparative advantage in rice? Describe the pattern of trade. b) Show that if the relative price of computers is smaller than 2/3, then country N would produce only rice. Likewise, show that country N will only produce computers if the relative price of computers to rice was to exceed 2/3. c) What accounts for this "knife-edge" behaviour? Contrast it with the HeckscherOhlin model, where the production of both goods is consistent with a whole range of relative prices. d) Now carefully redo part b) for country S, and argue that the autarkic price of computers to rice must be 2. Next, combining these two exercises, argue that if the economies are opened up to trade, the international relative price of computers to rice must lie between 2/3 and 2.