8. (35 Points) Countries Home and Foreign have two factors of production, capital and labor, with which they use to produce two goods, toys (t) and rice (r). Toy production is capital intensive. Rice production is labor intensive. Home is capital abundant. Foreign is labor abundant. a) Based on the Heckscher-Ohlin Model, what good will Home export? b) Home experiences an increase in capital supply. According to the Rybczynsky theorem, keeping prices constant, what will be the effect on the output of toys and rice at Home? Using the same diagram, draw the original PPF and the new PPF after the increase in capital supply. c) What is the formula of terms of trade for Home in terms on Price of toys PT and Price of Pata Pr? Write the formula. d) What is the impact of the increase in labor supply on Home's Terms of Trade? Use a World Relative Supply and Relative Demand Graph to show your answer. In the graph, PrPT should be in the y axis and QrQT should be in the x axis. Label the x and y access and all the curves in the graph