ECONOMICS (CBSE/UGC NET)

ECONOMICS

BARRIERS TO TRADE

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Read the text. Then answer the question that follows. Country X, a small country in Latin America, is a major exporter of oil, natural gas, and coal. The country has a modern, industrialized manufacturing sector and a thriving automobile industry. Rapid population growth coupled with a severe drought have led to food shortages and a sharp rise in grain prices. Which country should Country X trade with?
A
a country that specializes in energy production
B
a country that specializes in car manufacturing
C
a country that specializes in textile manufacturing
D
a country that specializes in agricultural production
Explanation: 

Detailed explanation-1: -The vast majority of natural gas in the United States is considered a fossil fuel because it is made from sources formed over millions of years by the action of heat and pressure on organic materials. Alternatively, renewable natural gas (RNG), also known as biomethane, is a pipeline-quality vehicle fuel.

Detailed explanation-2: -The world lacks safe, low-carbon, and cheap large-scale energy alternatives to fossil fuels. Until we scale up those alternatives the world will continue to face the two energy problems of today. The energy problem that receives most attention is the link between energy access and greenhouse gas emissions.

Detailed explanation-3: -Nonrenewable Resources. Nonrenewable energy resources include coal, natural gas, oil, and nuclear energy. Once these resources are used up, they cannot be replaced, which is a major problem for humanity as we are currently dependent on them to supply most of our energy needs.

Detailed explanation-4: -Global Impacts: The increasing domestic energy consumption of developing countries also has repercussions at a global level. Developing countries currently use more than half of the world’s energy (albeit with significantly lower per capita consumption than in developed countries).

There is 1 question to complete.