South Africa and Lesotho are two countries using capital (K) and labour (L) to produce cars and blankets. South Africa is a capital abundant country and Lesotho is a labour abundant country. The production of cars is capital intensive and blanket production is labour intensive. There is incomplete specialization in both countries. Using the hypothetical scenario above, explain and show with the aid of a well-drawn diagram, that factor endowments determine comparative advantage and therefore that there are gains to be made from trade between the two countries.