Suppose that the comparative-cost ratios of two products—baby formula and tuna fish—are as follows in the hypothetical nations of Canswicki and Tunata:
Canswicki: 1 can baby formula = 2 cans tuna fish
Tunata: 1 can baby formula = 4 cans tuna fish
In what product should each nation specialize? Explain why terms of trade of 1 can baby formula = 2½ cans tuna fish would be acceptable to both nations.