Omega can produce either 18 oranges or 9 apples an hour, while Theda can produce either 16 oranges or 4 apples an hour. If the terms of trade are established as 1 apple for 4 oranges, then: there are no incentives for Omega or Theda to specialize and trade with one another. it is in the interest of Theda to grow oranges and trade for apples. there are no incentives for Theda to engage in international specialization and trade with Omega. it is in the interest of both countries to specialize and trade with one another