Question

As with any small island country, Cuba has fewer natural resources than countries such as Brazil. This affects their economy in that Cuba A) exports only manufactured products. B) exports more products than it imports.. C) must import more products than it exports. D) has imposed trade barriers against the United States.

Answer 1

C) Must import more products than it exports.

Answer 2

Answer:

The correct answer is C. As with any small island country, Cuba has fewer natural resources than countries such as Brazil. This affects their economy in that Cuba must import more products than it exports.

Explanation:

In general, small island nations have small economies that rely heavily on imports to meet the demand for different products that cannot be produced in their territories. Cuba is no exception to this rule; Even Japan is not, that imports 60% of the products it consumes.

The Cuban trade balance is highly deficient: it exports for an annual value of 2 billion dollars, while it imports for an annual value of 11 billion, that is, it spends more than 5 times what it sells.

Cuba is a communist economy, with serious problems of production and supply of products. This aggravates its condition, generating a clear shortage of basic products for its citizens.