In Isoland international trade is forbidden. The country's Minister of Economics argues that Isoland has nothing to gain from free trade, because as a cutting-edge leader in all industries the labor productivity is higher than in the rest of the world. To underpin his view he refers to the following statistic of labor input used in the production of cars and computers.

Working hours per car

Working hours per computer

Rest of the world

120

40

Isoland

50

30

1. By using the data in the table, determine the "absolute" cost advantage for producing cars vs computers. (10 marks)
2. Assume that the Rest of the world and Isoland engage in free trade. What will the pattern of international trade be (i.e., what good will each country export and what will it import)? Please elaborate.