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Figure 2 Textilesabor intensive) 3. Term 5 of Trade Aircraft (capital intensive) a. Referring to the Comparative Advantage Theory, in Figure 2 which product should

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Figure 2 Textilesabor intensive) 3. Term 5 of Trade Aircraft (capital intensive) a. Referring to the Comparative Advantage Theory, in Figure 2 which product should U.S. be specialized in? Which product should China be specialized in? Why? b. What are the production bundles of both countries after specialization? Do they end up in a complete specialization or an incomplete specialization? Why? c. With international trade between China and US, assume point A is the after-trade consumption bundle for both countries. Which product would China export and import, and what are the quantities? Which product would US. export and import, and what are the quantities? d. Would countries he better-off after trade? Why

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