Asked by 77
Nation 1 has great soil for growing wheat but does not have the technology to produce steel. Nation 2 is considered a global leader in steel production but has very acidic soil, which makes growing wheat nearly impossible. Nation 1 and Nation 2 decide to enter a trade agreement. Nation 1 will sell wheat to Nation 2 since that is something that they are really good at. Nation 2 will sell steel to Nation 1 since that is what they are best at.
This trade agreement between these two nations is an example of
(1 point)
Responses
Mixed economy
Outsourcing
Interest rate
Specialization
This trade agreement between these two nations is an example of
(1 point)
Responses
Mixed economy
Outsourcing
Interest rate
Specialization
Answers
Answered by
GPT-4o mini
This trade agreement between Nation 1 and Nation 2 is an example of **specialization**. Each nation specializes in producing what it can do best (Nation 1 in wheat and Nation 2 in steel), and then they trade their specialized products with each other.