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3. There are 4 different activities that make up the production and sale of a particular good: 1. Research and Development, 2. Component Production, 3. Assembly, 4. Sales and Marketing. In the Home country the hours of low-skilled and high-skilled labour needed to perform each activity (per unit of output of the final good) are as follows: Home Low-Skill High-Skill 1. R&D 10 2. Component Production 3. Assembly 4. Sales & Marketing In the foreign country the requirements are follows: Foreign Low-Skill High-Skill 1. R&D 4 40 2. Component Production 16 3. Assembly 24 4. Sales & Marketing 16 Foreign labour productivity is } that of Home across all activities. (a) Determine the ratio of high-skill to low-skill labour requirements for each activity and order the activities from lowest ratio to highest ratio. (b) The following table provides information on the wages in Home and Foreign: Wages ($/hour) Home Foreign Low-skill 10 High-skill 25 CT Any activity located in Foreign and imported to Home faces additional trade costs of 30%. Determine which activities should be completed in Home and which activities should be offshored to Foreign