Without looking at the text, (a) Sketch a figure similar to Figure 5.4 showing the autarky equilibrium

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Without looking at the text,
(a) Sketch a figure similar to Figure 5.4 showing the autarky equilibrium point in each nation and the point of production and consumption in each nation with trade.
(b) With reference to your figure in part a, explain what determines the comparative advantage of each nation.
(c) Why do the two nations consume different amounts of the two commodities in the absence of trade but the same amount with trade?
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International Economics

ISBN: 978-1119915737

11th edition

Authors: Dominick Salvatore

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