Economics 0455 · IGCSE · International specialisation

International specialisation — practice question

A country possesses substantial oil reserves. It chooses to make a broad variety of products instead of concentrating on oil production. What is not an acceptable reason for supporting this decision?

  • AOil is a non-renewable resource that could be exhausted quickly.
  • BProducing a wide range of goods increases the benefits from free trade.
  • CRelying on other countries for vital goods and services makes a country vulnerable.
  • DThe price of oil is volatile, making export revenue unstable.

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