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5.1 Malawi has beautiful resort areas. These attract a lot of immigrants from Namibia. As a result of the Covid-19 virus lockdown restrictions removal. 10

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5.1 Malawi has beautiful resort areas. These attract a lot of immigrants from Namibia. As a result of the Covid-19 virus lockdown restrictions removal. 10 000 Namibian investors invested in Malawian resort places. Assume that the capital and labour market are in equilibrium. Using an Edgeworth box and the Rybezynski proposition describe the effects of the investments by Namibians on Malawi's economy on the production of Chakalaka and Beer (8) 5.2 Assuming Namibia has a high intensity of labour abundance whilst Malawi has a high intensity of capital abundance. Using the production possibilities curve and the Heckesher- Ohlin proposition, explain how Namibia and Malawi can gain from international trade by exchanging Chakalaka and Beer. (12)

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