QUESTION 22 Table 1 Suppose that you are the executive manager of a multinational company that is located in the U.S. Your company is interested in expanding its international activities by producing two new products: calculators and cigars. It considers two countries: Italy and/or Mexico. Both Italy and Mexico have each 2 units of labor available to produce the two goods, calculators and cigars. Using one unit of labor for the production of each product, Mexico and Italy have the following production/consumption: Output/Man-Day Mexico Italy Calculators Cigars 10 2.5 7.5 5 Refer to the information in Table 1. The domestic terms of trade of Italy are: Two of the above choices are correct O 2.5 calculators will be exchanged with 5 cigars. O 2.5 calculators will be exchanged with 7.5 cigars. 2 cigars will be exchanged with 1 calculator. 1 cigar will be exchanged with 2 calculators