a. You work for the U.S. president and are tasked with understanding the effect of population aging in China on trade between China and the U.S. You are told that you can assume that China and the U.S. trade a continuum of goods produced with only labor in both countries. Markets are perfectly competitive and the unit labor requirements differ across goods and countries. Use a suitable diagram to illustrate the effect of a decline in labor L in China on a) the set of goods made in China; b) the relative (nominal) wage in the two countries. Explain the intuition behind your findings.

Assume a Ricardian model. The following table shows the amount of output produced by each unit of labor in Germany and France and also the amount of labor available in those countries. Wheat (W) Computers (C) France 5 8 Germany 2 4 (a) Under free trade each country completely specializes in the good in which it has comparative advantage. Germany has 90,000 units of labor. Germany consumes 105,000 tons of wheat whether it is in autarky (no trade) or in free trade. Suppose under free trade the terms of trade are 1W = 1.75C. How many computers does Germany gain when its economy moves from autarky to free trade? Fermany produces Comparative wheat 525d = 0) once advantage. trade

Please answer both the question please..

If one assumes that automobile transportation costs from South Korea to France surpass the price differential in autos that existed before trade between South Korea and France, then, in similar cases trade is:a. Unattainableb. Probablec. Very profitabled. Marginally profitable