For each of the following statements say whether it is true or false and explain why using a coupleof sentences, graphs or equations.

(a) Trade among rich (developed) countries accounts for the great majority of global trade flows.

(b) Shares of goods and services in international trade are similar to their shares in GDP.

(c) In the Ricardian model, if two countries have identical technologies for producing Wheat thenneither of them will export Wheat.

(d) In the Ricardian model free trade equalizes prices of goods between countries; therefore workerswould have no economic incentive to migrate between countries.