Question

Australia is a major producer of agricultural and dairy products and exports coffee, tea, spices, and milk products to the United States. The United States is the world's third largest supplier of machinery and exports heavy machinery to Australia. Adam Smith would say this exchange occurs because _________.

Answer 1

Answer: There would be a trade between both countries amidst their resources.

Step-by-step explanation:

Each country would trade their goods produced by themselves for the other. Australia would trade her food products for America weapons and vice versa.