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Problem Set 2H International trade answers Use the matrix below to answer the following questions Mexico US Beer 1250 2000 Tomatoes 8750 10,000 1) i) Which nation has the absolute advantage in beer production? ii) Which nation has the absolute advantage in tomato production? (2 pt) 2) i) What are the relative prices of beer and tomatoes in Mexico? (2 relative prices) ii) What are the relative prices of beer and tomatoes in US? (2 relative prices) (4 pts) 3 ) i) Which nation has the comparative advantage in beer production? ii) Which nation has the comparative advantage in tomato production? (2 pts) 4 ) i) What does Mexico export? ii) What does Mexico import? iii) What does the US export? iv) What does the US import? (2pt)