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In order to conjecture the circumstances in these two countries under autarkv (when there is no trade), consider th following hypothetical scenario based on Ricardian

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In order to conjecture the circumstances in these two countries under autarkv (when there is no trade), consider th following hypothetical scenario based on Ricardian model. Assume throughout that those two countries (Argentina and El Salvador) are the only two countries in the world. at least for purposes of trade. There are two goods: Hammers and Widgets. Consumers in both countries alwavs spend half of their income on Hammers and half of their income on Widgets. The onlyr factor of production is labour. Each Argentinian worker can produce 4 Hammers or 2 Widget per unit of time. Each El Salvadoran worker can produce 2 Hammers or 2 Widgets per unit of time. There are 50 worker in Argentina and 7'5 workers in El Salvador. You need to provide conditions in each country by stating: a) Which country has an absolute advantage in Hammer? In Widget

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