Hi I hope that you can help me with this question. I don't understand the second part of this question. I figured figure 1 out with my own tutor, but the explain question is still hard for me to understand. My problem with this type of questions is that I do not understand where I have to start to explain, simply because there is so much to explain. I really hope that you can help me. Thank you in advance!

Given is the standard 2-good, 2-country Ricardian model of international trade. Home has a labour force of 200 hours and Foreign of 100 hours.

The unit labour requirements for X and Y are as follows:

	Home	Foreign
X (hours/unit)	2	3
Y (hours/unit)	1	1/2

The figure that you drew gives the world RS-curve belonging to this situation. It also depicts the world RD-curve, which is given by ?? ?2/PyPx?

I drew the figure in the attachment.