Which of the following is an example of how specialization affects global interdependence?
A. Food aid provided by NGOs reduces the incentive for domestic agriculture.
B. IMF loans to developing nations make workers in these nations less prepared to compete in global markets.
C. Lower oil production in Saudi Arabia leads to higher prices for gasoline in the United States.
D. The U.S. pursuit of space technology brings together people and sources from across the globe.
C. Lower oil production in Saudi Arabia leads to higher prices for gasoline in the United States.
C. Lower oil production in Saudi Arabia leads to higher prices for gasoline in the United States.
This is an example of how specialization affects global interdependence because it demonstrates how the specialization of oil production in Saudi Arabia impacts other countries, such as the United States, who depend on oil imports. When there is a decrease in oil production in Saudi Arabia, it can lead to a decrease in the global supply of oil, which then results in higher prices for gasoline in countries like the United States that rely on oil imports. This interdependence highlights how changes in specialization and production in one country can have economic consequences for other countries in the global market.