Suppose that there is a new found country in the Pacific Ocean named Gondola. It has no technology and the only factor of production available is Gondola labor, Gondola can produce Gondolas Cheese and silk. We know that each Gondolas work can either produce 2 Gondolas Cheese or 3 units of silk. Assume that the PPF is a straight line, answer the following

a. From the information given, calculate the opportunity cost of Cheese and Silk in Gondola?

b. Discuss the cases under which Gondola will trade in the International markets. Also mention which good will trade under each case.

Gondola can trade with either US (at a realtive price of Pcheese/Psilk=4/3) or Mexico(at a realtive price of Pcheese/Psilk=2/4). which country will Gondola choose to trade with if it wants to increase real wages at home in the terms of Cheese? Explain your answer.