Final answer:
The deal described is an example of a buyback agreement, wherein Global Petroleum receives oil as payment for building refineries in Saudi Arabia. This exemplifies beneficial trade where a country can consume beyond its production possibility frontier by trading resources efficiently. Therefore, correct option is b.
Step-by-step explanation:
The deal between Global Petroleum and Saudi Arabia, where Global Petroleum will build several refineries in Saudi Arabia and receive oil as partial payment over a 20-year period, is an example of a buyback transaction.
This type of deal involves Saudi Arabia providing oil in return for the infrastructure that Global Petroleum has agreed to build, and it is a way for countries and companies to engage in trade that benefits both parties.
In the context of international trade, the example provided shows how trading can lead to increased gains for a country using its resources efficiently. By reducing Saudi oil domestic consumption and trading with the United States, Saudi Arabia can reach point D where they can consume more than they could without trade.
This principle is also supported by the production possibility frontier which indicates that the post-trade consumption is a beneficial outcome. The trade visualization data can offer additional insights into these trading dynamics.