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1 Gains from Trade Suppose that both manufacturing and agriculture are freely tradable. Suppose prices at Home (in autarky) and prices in the rest of the world are related by the following inequality: w H ome,autarky p menu f acturing > pmanufacturing w _ H ome,autarky pagnculture p agriculture 1. In what good does the Home economy have a comparative advantage? 2. Describe in detail What happens, after opening up to trade, to Home's: (a) Exports and imports for both goods (b) Consumption and production of both goods 3. Does Home gain from trade? Why