Output per worker
	Wheat	Cloth
Canada	12 kg	3 metres
China	4 kg	2 metres

1. For each good determine which country has the absolute advantage and which country has the comparative advantage for that good
2. At what set of relative prices do both countries gain from trade?
3. Show that both countries can consume more of both goods if Canada moves 10 workers into wheat production and exports 105 kg of wheat to China and China moves 20 workers into cloth production and exports 35 metres of cloth

Note : Change in consumption of good X = Change in domestic production of good X - Change in exports of good X + Change in imports of good X.