A country has a large number of highly advanced factories for producing cars. However, it does not have any sources of rubber to make wheels for the
cars. Therefore, it has to import rubber from other countries. This situation
best illustrates which factor that encourages global trade?
A. Eliminating trade deficits
B. Allowing for specialization
C. Lowering opportunity cost
D. Acquiring natural resources
SUBMIT

A. Eliminating trade deficits

Explanation:

When a country with high number of highly advanced factories that produce cars lacks the source of rubber to make the wheel of the cars and then has to import rubber from other countries, this explains the factor of eliminating trade deficits as it encourages global trade.

Trade deficit is the amount by which the import of a country exceeds its export.

By eliminating trade deficit, the country ensures that their export is more than what they import.

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