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Country A has a climate well-suited for agriculture, but few energy resources. Country B is arid but has plentiful access to oil. Which situation will benefit both countries the most?

2 Answers

1 vote

Answer: I believe B: Country A produces agricultural goods, Country B produces oil, and the countries do not engage in trade. is the correct answer

Explanation: hope it help

User T Dhanunjay
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3 votes

Answer:

Specialization

Step-by-step explanation:

Specialization is a term in the political economy that is used to describe the propensity of nations to focus on the production of a particular commodity, that can be used to trade for other needed commodities amongst other nations.

Instead of producing all commodities, they produce a surplus of a commodity that is cheaper for them.to produce and then trade it different commodities of other nations with a surplus.

Hence, in this case, given that Country A has a climate well-suited for agriculture, but few energy resources. It should SPECIALIZE in Agriculture while Country B that is arid but has plentiful access to oil should SPECIALIZE in the production of oil or Energy.

Therefore, both countries will benefit through the SPECIALIZATION of Trade.

User Feodor Fitsner
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