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Question 1....
within a two-country model with two goods produced by one factor, a1=2, a2=1,L=80, a1*=1, a2*=1, L*= 100, and C2/C1=C2*/C1*=1; where a1 and a2 denote the fixed quantities of labor input per unit of output for goods 1 and 2, respectively , in the home country; L stands for the total endowment of labor at home; C1 and C2 represent the quantities demanded ( in fixed proportion) of goods 1 and 2, respectively in the home country; and asterisks indicate the corresponding variables in the foreign country. For each good, what is the direction and volume of free trade?