You are given the following Classical-type table howing the number of days of labor input required to

Question:

You are given the following Classical-type table howing the number of days of labor input required to obtain 1 unit of output of each of the five commodities in each of the two countries:

(a) Assume that the wage rate in the United Kingdom (WUK) is £8/day, the wage rate in the United States (WUS) is $20/day, and the exchange rate (e) is $2/£1. With this information, determine the goods that will be U.K. exports and the goods that will be U.S. exports.
(b) Keeping WUS at $20/day and keeping the exchange rate at $2/£1, calculate the upper and lower limits (in pounds per day) to the U.K. wage rate that are consistent with two-way trade between the countries.
(c) With WUK at £8/day and WUS at $20/day, calculate the upper and lower limits (in $/£) to the exchange rate that are consistent with two-way trade between the countries.

Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...