Given below are two statements regarding trade
Statement I : According to Ricardian model, the need for trade arises due to differences in technology or natural resources.
Statement II : Japan has no oil reserves of its own, yet it is among the world's largest consumer of oil.
In the light of the above statements, choose the correct answer from the options given below.

Correct option is A

The correct answer is: (a), both the statements are true.
Statement I: According to Ricardian model, the need for trade arises due to differences in technology or natural resources: The Ricardian model, developed by economist David Ricardo in the early 19th century, suggests that countries specialize in producing goods and services in which they have a comparative advantage. Comparative advantage arises from differences in technology, natural resources, or other factors that affect the relative efficiency of production.
Statement II: Japan has no oil reserves of its own, yet it is among the world's largest consumer of oil: Japan is indeed one of the world's largest consumers of oil, despite having limited domestic oil reserves. Japan relies heavily on imported oil to meet its energy needs. The country's lack of significant domestic oil reserves necessitates the importation of crude oil and petroleum products from other countries to satisfy its demand for energy.