The example of the island of Nauru, where a valuable deposit of phosphate was discovered in the early 1900s, offers the lesson that
A) globalization and increased exports lead to higher incomes for local residents.
B) natural resources lead to expanded, sustainable income for local residents.
C) an open economy and world trade do not always lead to sustainable economic growth.
D) globalization and open economies lead to poorer local economies.

Question

Quizplus · Accepted Answer

The example of the island of Nauru shows that despite exporting its valuable phosphate, it did not lead to sustainable economic growth. The economy became heavily reliant on this one resource, and when it was depleted, the economy collapsed. This illustrates that an open economy and world trade do not always lead to sustainable economic growth.

The Example of the Island of Nauru, Where a Valuable