Question

Which among the following is a TRUE statement?

• A. In agriculturally important countries, agricultural products are expected to be exchanged for manufactured goods.
• B. Industrialized nations are expected to import machinery and finished products and export food grains and other raw materials.
• C. The countries which are pioneers in the research and development of defense technology are expected to import state-of-the-art defense technology from Third World.
• D. The stage of economic development of a country does not impact the nature of traded products.

Hint:

Apply the principle of specialization mentioned in the passage. Countries export what they are good at producing and import what they are not. Agricultural countries specialize in agriculture, and industrial countries specialize in manufacturing.

Answer 1

The Correct Option is A

Step 1: Understanding the Concept:
The question requires identifying the correct statement about the nature of international trade based on a country's stage of economic development, as explained in the passage. The passage states, "At different stages of economic development of countries, the nature of items traded undergo changes."

Step 3: Detailed Explanation:
\[\begin{array}{rl} \bullet & \text{(A) This is a classic pattern of trade. Countries specializing in agriculture (often developing countries) export agricultural products and import manufactured goods from industrialized nations. This statement is true.} \\ \bullet & \text{(B) This statement reverses the roles. Industrialized nations typically export machinery and finished products and import raw materials and certain food grains.} \\ \bullet & \text{(C) This is illogical. Countries that are pioneers in a technology would export it, not import it, especially not from less technologically advanced nations.} \\ \bullet & \text{(D) This directly contradicts the passage which says, "At different stages of economic development of countries, the nature of items traded undergo changes."} \\ \end{array}\]

Step 4: Final Answer:
The only true statement is that agriculturally important countries typically trade their agricultural products for manufactured goods.