Take two countries, Home and Foreign, that have different relative endowments of the two factors of production, capital and labor. These two factors are used in the production of two goods, airplanes, which use relatively intensively capital and textiles, which use labor relatively intensively. Assume that the Home country is relatively better endowed with capital than labor with respect to the Foreign country. Describe qualitatively and draw the appropriate graphs to illustrate the impact on the two countries' terms of trade and welfare of the following growth patterns:

(a) Increase in the capital stock in the Home country.

(b) Increase in the labor supply in the Home country.

(C)Increase in the capital stock in the Foreign country.

(d) Increase in the labor supply in the Foreign country.