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?RD: RS: ∴ ∴ In this case, Foreign will specialize in the banana production, export bananas and import apples. But Home will produce bananas and apples at the same time. And the opportunity cost of bananas in terms of apples for Home remains the same. So Home neither gains nor loses but Foreign gains from trade.5.Suppose that Home has 2400 workers, but they are only half as production in both industries as we have been assuming, Construct the world relative supply curve and determine the equilibrium relative price. How do the gains from trade pare with those in the case described in problem 4?In this case, the labor is doubled while the productivity of labor is halved, so the "effective labor"remains the same. So the answer is similar to that in 3. And both Home and Foreign can gain from trade. But Foreign gains lesser pare with that in the case 4. 6.”Korean workers earn only $ an hour。 if we allow Korea to export as much as it likes to the United States, our workers will be forced down to the same level. You can’t import a $5 shirt without importing the $ wage that goes with it.” Discuss. In fact, relative wage rate is determined by parative productivity and the relative demand for goods. Korea’s low wage reflects the fact that Korea is less productive than the United States in most indus