The following shows the cost in local currencies of five commodities in the US and UK. If 1=$2, determine which commodities will be exported by which…

The following shows the cost in local currencies of five commodities in the US and UK.a. If £1=$2, determine which commodities will be exported by which country. (2 points)b. What are the limits to exchange rates for trade to take place between these two countries? (3 points)Price in U.K.64321

Ans (a):Commodity Price in USA Price in UK ABC $2$4$6 £6=$12£4=$8£3=$6 DE $8$10 £2=$4£1=$2 Which countrywill export?USAUSACost same inbothUKUK Ans (b): The limits to exchange…