Which of the following reasons best explains U.S.imports of crude oil from Saudi Arabia and diamonds from South Africa?

Question

Quizplus · Accepted Answer

The most plausible reason for the U.S. importing crude oil from Saudi Arabia and diamonds from South Africa is due to differences in resource endowments. Saudi Arabia is one of the largest oil-producing countries in the world, and has large reserves of crude oil. On the other hand, South Africa is a significant producer of diamonds, and has some of the largest diamond mines in the world. The U.S. imports these resources to meet its own demand, as it may not have the same level of resources domestically.

Which of the Following Reasons Best Explains U