Country X has been thriving on its own with almost less international trade occurring for decades. The country has nearly forbidden all international trade for the last century. Despite this, the country has allowed the continuous flow of technology from outside its borders. Recently, the country established trade relations with the US and China only. Food and technology items were popular items imported by the country. The country's Prime Minister reported to the parliament that the country must undergo necessary changes if it plans to continue existing in the future. Here are some of the important information provided by the said Prime Minister in his report to parliament: 1. The country is relying more on solar, wind, and nuclear power for its electricity needs. 2. There are more electric vehicles than vehicles run by fossil fuel. The ratio is around 7 is to 3. Every year, the country's electric battery technology is improving, and few people are purchasing vehicles run by fossil fuel. 3. The country's population growth has been steadily increasing by around 5% annually. The country's small land area has been dominated by agricultural lands and now, around 45% of the country's land area. From 70% a century ago to 45% as of this current year. The population is steadily growing. 4. Agricultural production has gone down by 45% since the last century and the residential, commercial, and industrial sector has been continuously growing. The country's agricultural output may no longer be able to sustain the needs of the country's growing population. 5. The oil reserves of the century are still abundant, and the local consumption of oil and petroleum products is slowly declining yearly. Its reserves are still considered the largest in the world. It is only producing 10% of the world's oil supply for the last 12 years. Country X has the capacity of increasing its oil production volume by 5 folds in a short period of time due to its excellent state-of-the-art production facilities.

Questions to answer:

1. What are the benefits of bringing down barriers to international trade?

2. If giant energy corporations such as Shell and British Petroleum were to choose between Country X and the other country when it comes to investments, what would be the advantage(s) of Country X over the others? Why would they prefer Country X?

3. What trade theory would support the idea of Country X concentrating more on producing more oil products in the world oil industry?