While different natural resources and the theory of comparative advantage can explain many trade patterns, they cannot explain all types of trade that economists observe Consider each scenario in the following table and determine which theory best explains the trade pattern described Product Life Dynamic Intra- Industry Comparative Cycle Scenario Ice wine is a special spirit that can only be made during a few months in the winter. The nations of Fruzenton and Grappovia are in different hemispheres, and each produces ice wine. During each nation's winter, its ice wine industry produces enough to meet domestic demand and export to the other country. The ice wine exchanged between the two nations is nearly identical Advantage Theory Specialization For many years, microchip firms in the nation of Tablon have struggled with high production costs compared to firms in the nation of Ghovia, because Tablon's soldering tools are outdated, forcing workers to work slowly. As a result, most microchips are made in Ghovia and exported. An inventor employed by a firm in Tablon comes up with a new way to solder chips that makes workers 40% more efficient. This innovation reduces costs and allows the firms in Tablon to take over the microchip market. In response, firms in Ghovia start to research how they can update their factories to be more cost effective In the nation of Pescovia, the fishing industry has suffered when trying to compete internationally because many of the Pescovians who are capable of fishing successfully chose to pursue more stable jobs as computer programmers. The Pescovian government passed a law to grant full health insurance to all Pescovian fisherfolk. In response, many of the skilled Pescovians chose to abandon their jobs programming and began to fish. As the fishing industry grew, thanks to an influx of skilled fisherfolks, Pescovia became a major international exporter of fish Grade It Now Save & Continue Continue without saving