Question

Australia exports more goods to China than any other country it trades with. These goods include such things as iron ore, coal, crude petroleum, and wool. In turn, Australia imports goods like computers, cars, and refined petroleum from China. This is an example of how _______ promotes trade.
A.
productivity
B.
specialization
C.
a tariff
D.
a quota

Answer 1

B. specialization

Australia focuses on producing goods where it has an advantage (natural resources) while importing manufactured goods from China; this specialization encourages trade.