QUESTION 1 Consider the model with R&D and Components and with two countries Home and Foresgn Home has comparative advantage in R&D. Which of the statements below is TRUE? Oa The Terms of Trade of Home will worsen over time if Foreign improves in R&D. Ob The Terms of Trade of Home will improve over time if Foreign improves in R&D Oe If Foresgn improves in R&D or Components, gauns from trade could disappear over tume Od The Terms of Trade of Foreign will improve over tume if Home improves in Components

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