The US can make 60 units of wheat or 120 cars. Canada can make 160 units of wheat or 80 cars. What are the opportunity costs in each nation? Which nation has a comparative advantage in cars? In wheat? Imagine the two nations are not trading with easy other. The US produces and consumes 40 cars and 40 wheat. Canada produce and consumes 40 cars and 80 wheat. What is the total production of cars and wheat? Now suppose each nation specializes and only makes the product for which it has a comparative advantage. What is the new total production of cars and wheat? Next, suppose the US trades 60 units of the good it specializes in to Canada in return for 60 units of the good Canada specializes in. How much more or less can each nation consume compared to the situation in which it did not trade? 6 Assume the United States imposes a trade barrier, like a tariff, on Mexican agricultural products. How will this change the pattern of migration of agricultural workers between the two nations (assume it is difficult to prevent such migration from occurring)? Now suppose the trade barrier remains in place but a large wall is built between the US and Mexico making migration difficult but not impossible. Will US farmers be better off with a tariff and a wall? What about US consumers