Draw appropriate diagram(s) showing the following:A country (Germany) produces Wheat (W) and Steel (S).Germany has increasing costs.Before trade, Germany produces at a point P, where the internal exchange ratio is1 S = 1 W. Show diagrammatically, and explain thoroughly, whathappens if Germany has the opportunity to trade at 1 S = 2W . Identify all pertinent points and ideas clearly. Given theabove, reflect also on appropriate trade policy responses.

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