Consider a model with two countries, Home and Foreign, that each produce two goods, chairs and food, using two inputs, labor and land. Assume that Home is labor abundant, and production of chairs is labor intensive.

(a) Draw the PPF for each country as well as the relative demand/supply picture. Assume that preferences are identical in the two countries.

(b) If trade is allowed between these two countries, which country will import chairs? Explain how you know this (use a picture).