Directions The following questions consist of two statements. Statement I and Statement II. You are to examine these two statements carefully and select the answers to these items using the codes given below. Statement I Uneven distribution of natural resources leads to the necessity of foreign trade. Statement II Foreign trade causes trade fluctuations. Codes

• A.                                  Both Statements are correct
• B.                     Both Statements .are incorrect
• C.                     Statement I is correct, but Statement II is incorrect
• D.                     Statement I is incorrect, but Statement II is correct