Revia and Bramin are European nations that signed a trade agreement with each other. The agreement stated that Revia would supply sugarcane to Bramin and Bramin would supply cloves to Revia. The agreement would benefit both nations and would even out some of the resource imbalances in the two nations. In this scenario, which of the following is most likely to have influenced the trade agreement between Revia and Bramin?
A) Reduced risk
B) Ease of storage of goods
C) Access to factors of production
D) Inflow of innovation

Question

Quizplus · Accepted Answer

The trade agreement is likely influenced by access to factors of production, as each country is supplying a resource that the other lacks, thereby balancing resource imbalances.

Revia and Bramin Are European Nations That Signed a Trade