Question

The United States and Saudi Arabia are partners in International Trade due to specialization. Choose the type of specialization trading taking place between the two countries?

A) Heavy equipment from the United States is traded for agricultural products from Saudi Arabia
B) Oil from the United States is traded for agricultural products from Saudi Arabia
C) Oil from Saudi Arabia is traded for agricultural products from the United States.
D) Heavy equipment from Saudi Arabia is traded for agricultural products from the United States.

Answer 1

C)Oil from Saudi Arabia is traded for agricultural products from the United States.

Explanation:

The correct answer is "oil from Saudi Arabia is traded for agricultural products from the United States." The U.S. is a producer of oil, but Saudi Arabia produces MUCH more than the U.S. Besides, the climate of Saudi Arabia is not very conducive to farming.

Answer 2

The correct answer is C.