Question

Which statement BEST explains how specialization encourages trade between countries?

1. Israel’s trade with neighboring countries is limited because of tariffs on imported and exported goods.

2. The US imports oil from the Middle East while some countries there rely on the US for food and technology.

3. A very large majority of Iran’s exports are oil related products which the world needs. Oil is a non-renewable resource.

4. Iran is developing their own nuclear capabilities which few countries have and has threatened the country of Israel in the past. This could result in an embargo.

Answer 1

Answer:

2. The US imports oil from the Middle East while some countries there rely on the US for food and technology.

Explanation:

A specialization occurred when the process of production a certain product become so cheap and efficient in a country. This allow them to focus their time and resources solely on producing that product and imported other product that they need.

The middle east had the largest oil reserves in the world (As per today, it's 10 times more than US have. They might have some that they haven't discovered yet) .  For United States, this means that importing oil from the middle east is much cheaper compared to producing it by their own. They could focus that time and resources for producing foods and technology instead.