f. Explain how the terms of trade are determined in equilibrium. (6 marks) Fully explain the Balassa index. (3 marks) h. The following table presents data on 5 countries exports of certain goods. For each country calculate the Balassa index for each good relative to the world position (the five countries constitute the world for this problem). Discuss your findings. (7 marks) Country Sector Wheat Cotton Computers Cars 200 600 120 330 140 640 900 400 320 620 510 320 98 450 340 150 100 80 65 40We are given the following labour per output ratios for the US and Mexico: Chemicals Radios US 1 Mexico 10 This should be read as; in order to produce 1 unit of the good, for example chemicals, we need 1 unit of labour in the US and 10 units of labour in Mexico