Problem 3 Consider the home economy as described in Problem 2. Assume a foreign economy also produces meat and gasoline and has the aggregate labor supply of 2000 labor units. Foreign's labor unit requirement in meat production is 2 and in gasoline production it is 6. (a) Display comparative advantages of both economies. (b) Explain how these countries are expected to specialize. (c) What good is to be exported by each country? Why? (d) Construct the diagram of equilibrium of world relative supply and relative demand. Consider any version of relative demand curve. (e) Explain the diagram in terms of international trade. Problem 4 Given the data on unit labor requirement in the table below, define the countries which have absolute and comparative advantages in producing each good. Provide relevant calculations. Good Country Country A Laptops Smartphones Desktops 10 21 20 Country B 18 8 15 Country C 14 16 10 Explain the implications of these advantages in terms of international trade, specifically the directions of exporting and importing.