Question

Country X and Country Y are trading partners. Both countries grow wheat and both countries produce smartphones. Country X has large open prairies and a temperate climate. Country Y is a small, densely-populated island nation with a strong technology industry. What situation would likely benefit both countries the MOST?
A Country X specializes in producing wheat. Country Y specializes in producing smartphones. The two countries engage in trade.

B Country Y specializes in producing wheat. Country X specializes in producing smartphones. The two countries engage in trade.

C Country X and Country Y both specialize in producing smartphones. The two countries impose barriers to trade with each other.

D Country X and Country Y both refuse to specialize their production. The two countries impose barriers to trade with each other.

Answer 1

Answer: A

Explanation: country x has ideal land conditions for farming so it would be better for growing wheat. Country y has a strong technology industry making it better for producing smart phones and it is also small and densely populated meaning it would be hard to grow wheat. So if the two countries trade they could both gain something and benefit.