Suppose we are considering an HO model setting, where countries have not yet opened up to trade. Two goods are produced exclusively by domestic labor supplies, oil and fryers. Suppose oil is labor-intensive in production, whereas constructing fryers is a capital intensive task. Home and Foreign maintain the following capital (K) and labor (L) endowments. a) (5 points) Which country has comparative advantage in producing oil? Show your calculations. b) (5 points) Sketch the PPF and indifference curves for Foreign. Which indifference curve is produced upon? Highlight this item and label the equilibrium point of production. c) (5 points) Consider a shock to the economy where Foreign suddenly becomes endowed with additional capital and labor. Sketch what is expected to happen to the PPF and equilibrium production bundle