Table 2 below shows the quantity of computers and clothes produced by Malaysia and Singapore respectively. Note that 50% of the country's resources is used to produce computer and clothes respectively for both Malaysia and Singapore.

Table 1: Production of Goods

	Computer (in units)	Clothes (in units)
Malaysia	1,000	1,500
Singapore	2,500	1,250

a) Determine which country should specialize to produce and export computer and clothes respectively.

b)If Malaysia and Singapore were to trade between each other, propose the range of terms of trade that are plausible.

c) Explain the intuition why both countries will benefit if they were to trade based on term of trade proposed in Part b of Question 2 above.