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?

Specialization

Explanation:

Specialization is a term in the political economy that is used to describe the propensity of nations to focus on the production of a particular commodity, that can be used to trade for other needed commodities amongst other nations.

Instead of producing all commodities, they produce a surplus of a commodity that is cheaper for them.to produce and then trade it different commodities of other nations with a surplus.

Hence, in this case, given that Country A has a climate well-suited for agriculture, but few energy resources. It should SPECIALIZE in Agriculture while Country B that is arid but has plentiful access to oil should SPECIALIZE in the production of oil or Energy.

Therefore, both countries will benefit through the SPECIALIZATION of Trade.

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