Problem (40%) 1. 2 countries: home and foreign; 2 goods: iPods and songs For home, the input labor requirements are: ali = 2 and als = 5. For home, L = 100. For foreign, the input labor requirements are: at; = 1 and als = 5 . For foreign, L' = 200. 1. (5%) Which country has the absolute advantage in iPod production? (Explain) 2. (5%) What is the opportunity cost of iPods in terms of songs: a) in home? b) in foreign? 3. (5%) Which country has the comparative advantage in: a) iPads? b) songs? 4. (5%) If the countries open to trade, what can we say about the relationship between aLi aLs aic ali and the relative world trade price of iPods? iRed production