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Now consider the following data involving Country A and Country B , producing wheat ( W ) and cloth ( C ) . Here are

Now consider the following data involving Country A and Country B , producing wheat ( W ) and cloth ( C ) . Here are the given labour productivities and total labour forces for each country: Country A - Labour productivity in wheat AW = 10 units of wheat per worker per month; - Labour productivity in cloth AC = 5 units of cloth per worker per month; - Total labour force LA = 100 workers. Country B - Labour productivity in wheat BW = 8 units of wheat per worker per month; - Labour productivity in cloth BC = 4 units of cloth per worker per month; - Total labour force LA = 80 workers. What are the implications of the terms of trade between Country A and Country B on their production and consumption levels, and how does this illustrate the benefits of trade for both countries? Assume that the terms of trade are such that Country A trades 2 units of cloth for 1 unit of wheat with Country B . Provide the graph to explain and figure, formal calculations. Explain specific

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