Question

Ountry 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?

Answer 1

Answer is given below :

Step-by-step explanation:

• Specialization is a term used in political economics to describe the tendency of countries to focus on the production of a particular commodity, which is used to trade essential commodities between other countries.
• Instead of producing all the goods, they produce a surplus of cheap goods. Produces and trades various goods from other countries with surplus.
• Therefore, in this case, the country A has a favorable climate for agriculture, but less energy resources. It must have expertise in agriculture, while country B is dry, but has full access to oil, must be skilled in oil or energy production.