Summarize Argument
Specialization in international trade carries risk. Small countries often have a small number of products that make up the majority of their exports. Examples of risks that could hurt the economy of these countries are that raw material exports could be used up and foodstuffs could be destroyed by natural disasters.
Identify Conclusion
The conclusion is the author’s warning about specialization in international trade: “such specialization carries risks.”
A
Specialization within international trade comes with risks.
This accurately rephrases the conclusion that specialization within international trade carries risks.
B
A natural disaster can destroy a whole season’s production overnight, devastating a small country’s economy.
This is a premise. It is an example of a risk that faces countries who specialize.
C
A small country’s supply of raw materials can be used up in a short period.
This is a premise. It is another example of a risk that faces countries who specialize.
D
Some countries rely on a small number of products for the export-based sectors of their economies.
This is a premise. It demonstrates why specialization is risky. If countries rely on only a few products, their exports are not diversified against disaster.
E
When international trade is free, countries can specialize in what they export.
This is context that sets up the argument about the potential risks of specialization.