Suppose labor is the only cost of production and labor productivities (output per unit of labor input) in Japan and India are as follows:
(a) If these are the only two nations who trade, and consumers in both countries demand all three goods (the only ones that are available), explain what you can conclude about the comparative advantage of each country.
(b) Within what limits must the ratio of Japanese wages to Indian wages settle when trade is possible? If that ratio turns out to be 5.5, what goods will each country export and import?