Could you please provide step by step solution? Thank you very much in advance.

This question is very important for my future exam, could you please provide a clear solution?

Problem 2 (I-Ieckscher-Ohlin model) [week 3] Consider a world with two countries, Home and Foreign, both able to produce two goods: cloth and tablet computers. The production of both goods uses capital and labor in xed proportions, with the tablets industry using more capital per worker than the cloth industry. The units of each input needed to produce one unit output are given by: Both countries have 150 units of capital available for production, but the Home country has 100 units of labor whereas the Foreign country has 200. Consumers like to consume both goods and have the same preferences in both countries. Assume that the countries are closed to international trade. a) Construct the PPF for both countries and put them in the same graph. Show in the graph the quantity of both cloth and tablets that are produced by each country in equilibrium, if the countries are not trading. [HINT: assume regular indifference curves and use the graph to determine the quantity of each good demanded at the highest indifference curve] Compute these quantities algebraically