Two countries employ resources (labour) equally and effectively. Langa andZutula are the small countries compared regarding the two goods produced:

Tables and chairs.

Use the information below to answer the questions that follow.

Units per employee Langa Zutula

Tables 100 40

Chairs 50 10

Q.1.2.1Which country will specialise in the production of chairs and exportthem?(Note: Show all calculations)(3)

Q.1.2.2Assume that the production of chairs in Zutula increases to 20products per employee.How would the current trade between the two countries in terms oftables change