Table A below shows the amount of labour required to produce one unit of Beer or Car (this is also known as the 'unit labour requirements') in country 'Home' and country 'Foreign'. E.g. Foreign requires 2 units of labour to produce 1 unit of Beer.

Table A: Unit Labour Requirements

Nation Beer Car

Home 1 3

Foreign 2 4

Assume both countries have the same amount of labour (100). According to the Ricardian model of comparative advantage (specifically, differences in technology) what is the trade pattern when the two countries can freely trade with each other? What is the maximum and minimum price of wine (in terms of bicycles) in free trade such that both countries are better with trade than in autarky? (5 marks)