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Home Country Foreign country number of bikes per hour 4 2 number of snowboards per hour 6 8 In no-trade equilibrium, what is the real

Home Country Foreign country

number of bikes per hour 4 2

number of snowboards per hour 6 8

  1. In no-trade equilibrium, what is the real wage at Home in terms of bicycles and in terms of snowboards?
  2. What is the no-trade relative price of bicycles at Home?
  3. When we open to trade, will the world price (the relative price of bicycles in international market) be higher than the number you get in 2 or lower than the number you get in 2? Please explain.

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