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i mes exercise applies the basic Roardion model of one factor and two goods. The table below contains the unit labor requirements in Foreign and Home for each of two pooda Chocolate Wine Home Ate = 6 hours per pound atw 5 hours per gallon Foreign Be "2 hours per pound Diw * 6 hours per gallon whore ALc # number of labor hours needed to produce a unit of chocolate in Home w . number of labor hours needed to produce a unit of wine in Home, number of labor hours needed to produce a unit of chocolate in Foreign, LW . number of labor hours needed to produce a unit of wine in Foreign; Po . the absolute or money price of chocolate on world markets; Pw . the absolute or money price of wine on world markets As long as the world equilibrium relative price (c/Py) les between 0.33 and 1.2 galons, the two countries will specialize, with all Foreign workers producing In the post-trade equilibrium the wage of workers in Foreign relative to the wage of workers in Home will lie between OA 013 OB. 0.33 and 3. OG. 12 and0.83 OD. 2 and 5