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
1
Both Statement I and Statement II are true
2
Both Statement I and Statement II are false
3
Statement I is true but Statement II is false
4
Statement I is false but Statement II is true