1. Australia and Germany are considering an agreement which would enable trade to occur. This agreement would enable a wide range of goods to be traded , if this was possible . Currently the two items...

1.

Australia and Germany are considering an agreement which would enable trade to occur. This agreement would enable a wide range of goods to be traded , if this was possible . Currently the two

items being considered are pharmaceuticals and apples. Based on current output and prices Germany can produce 5 units of pharmaceuticals whereas Australia can produce 3 units of pharmaceuticals . For apples , Germany can produce 5 units and Australia can produce 4 units .
Required:
Explain whether trade can occur between the two countries and if it can occur how it will happen .