Noplasticland uses its limited foreign-exchange resources to buy plastic chips abroad for recycling into plastic products. Although the products thus manufactured earn more foreign exchange than the cost of buying the chips, that course is ill-advised. Noplasticland’s own territory has vast petroleum reserves, which can be extracted without spending almost any foreign exchange. Which of the following, if true, provides the strongest support for Noplasticland’s policy of buying plastic chips abroad?
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