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.
The most beneficial situation for both countries is option D.
Both countries producing agricultural goods and oil allows them to utilize their respective resources efficiently. Engaging in trade further enhances their benefits as both countries can exchange their surplus goods for the resources they lack. Country A can trade its agricultural goods for the oil it needs from Country B, while Country B can trade its oil for the agricultural goods it requires from Country A. This mutually beneficial trade allows both countries to access the resources they need and increase their overall economic prosperity.