Labor requirements United Kingdom Australia 1) For Sausage and Beer only: Sausage 16 hr/lb 12 hr/lb 8 hr/gal 8 hr/ I Fish 6hr/lb 8 hr/lb Wine 20 hr/gal 14 hr/ al Beef 18 hr/lb 20 hr/lb a. Which country has the comparative advantage in sausage and in beer? Be sure to show your derivation. b. What are the limits on the terms of trade specified in terms Of lbs Of sausage/gallon Of beer for mutually beneficial trade to exist between the uK and Australia? Which country gains as the terms Of trade become larger but still within these limits? C. If the wage rate in Australia is AS4/hr and the exchange rate is EI/A$I, what are the limits On the wage rate in the UK such that the two countries trade with each other? 2) Now include Fish Wine and Beef: a. If wage rates are AS4/hr in Australia and E4/hr in the United Kingdom. and the exchange is EI/A$I, which country will export each Of the five goods? b. How will the patterns of trade change if the Australian wage rises to AS5/hr while the wage in the (JK and the exchange rate remain the same?