Part III. Problem (25 points) Consider the " 221 " Ricardian model of international trade. Labor-hours required to produce 1 unit of cloth (C) and 1 unit of wine (W) are given for England and Portugal in the following table. The international (free-trade) terms-of-trade (TOT) between England and Portugal is given as: 1C=0.9W a) (5 points) When they trade with each other, which country should import C? Which country should import W? Explain briefly and show your calculations clearly. b) ( 10 points) How many hours of labor does England save per unit of its import good by engaging in free trade with Portugal? Explain briefly and show your calculations clearly. c) (10 points) How many hours of labor does Portugal save per unit of its import good by engaging in free trade with England? Explain briefly and show your calculations clearly. Part III. Problem (25 points) Consider the " 221 " Ricardian model of international trade. Labor-hours required to produce 1 unit of cloth (C) and 1 unit of wine (W) are given for England and Portugal in the following table. The international (free-trade) terms-of-trade (TOT) between England and Portugal is given as: 1C=0.9W a) (5 points) When they trade with each other, which country should import C? Which country should import W? Explain briefly and show your calculations clearly. b) ( 10 points) How many hours of labor does England save per unit of its import good by engaging in free trade with Portugal? Explain briefly and show your calculations clearly. c) (10 points) How many hours of labor does Portugal save per unit of its import good by engaging in free trade with England? Explain briefly and show your calculations clearly