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?

A. Country A produces agricultural goods, Country B produces oil, and the countries engage in trade.
B. Country A produces agricultural goods, Country B produces oil, and the countries do not engage in trade.
C. Both countries produce agricultural goods and oil, and the countries do not engage in trade.
D. Both countries produce agricultural goods and oil, and the countries engage in trade.

1 answer

D. Both countries produce agricultural goods and oil, and the countries engage in trade.

By engaging in trade, Country A can export their surplus agricultural goods to Country B in exchange for oil. This allows both countries to benefit from their respective resources and meet each other's needs. Trade can also lead to economic growth, increased standard of living, and overall mutual prosperity for both countries.
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