Consider the information below for Namibia and Malaysia.
Namibian labor: 16 baskets/day or 4 lamps/day
Malaysian labor 20 baskets/day or 8 lamps/day
-Each country specializes in the good for which it maintains a comparative advantage. In this example, Namibia will specialize in _____ and Malaysia will specialize in_____.

Question

Quizplus · Accepted Answer

Namibia has a lower opportunity cost for producing baskets (1 basket = 0.25 lamps) compared to Malaysia (1 basket = 0.4 lamps), so Namibia specializes in baskets. Malaysia has a lower opportunity cost for producing lamps (1 lamp = 2.5 baskets) compared to Namibia (1 lamp = 4 baskets), so Malaysia specializes in lamps.

Consider the Information Below for Namibia and Malaysia