An international oil company said that it would end oil exploration off the coast of Namibia. This was because the oil found would only be enough to supply a local power station in Namibia and would not be sufficient for oil exports. What could be one benefit and one drawback for Namibia from this decision?
- Aadvantage: a reduction in potential external costs of pollution; disadvantage: the loss of cheaper oil
- Badvantage: a reduction in taxes paid by the oil company to the Namibian government; disadvantage: the conservation of a natural resource
- Cadvantage: a saving in costly research paid for by the oil company; disadvantage: a loss of employment opportunities
- Dadvantage: the exhaustion of a natural resource; disadvantage: the loss of potential exports