The china can produce 12 cases of iphones or 8 calculators. India can make 6 cases of iphones or 12 calculators with each unit of production. Each country dedicates a total of 1000 units of production for iphones and calculators.

Country iphone calculators

China 12 8

India 6 12

Using the information above, at a trading ratio of 1 (cases of IPods for handmade watches), or 1 case of IPod for 1 handmade watch which is right answer

1.China gains 100% of the benefits of trade.

2.India gains 100% of the benefits of trade.

3.China and India evenly split the advantage brought about by trade.

4.In this example, neither country benefits from international trade.

Please explain with calculation