0
Rate this Study Guide:
☆☆☆☆☆A country has an absolute advantage over another in producing a commodity if it can produce that commodity using fewer resources than the other country. Example, country A can produce widget using one unit of labor, country B can produce one widget using two units of labor, then country A has an absolute advantage over country B in producing widgets.
The world bank lends money to memeber nation so that they could be carry out the work of public importance and usefulness.
Environmental-protection laws can be bad for the economy because they may increase unemployment.
The acceptance of economic policy recommendations
There must be an international division of labor for a country to specialize its production.
The mobility of goods, services, labor, and capital
The income level and standard of living
The income gap between rich and poor countries has widened.
Labor intensive production is cheaper to do in countries with lower pay rates. In the US, there's a minimum wage, other places there isn't.
Some other textile tasks, like dyeing(which is often toxic), is cheaper to do in places with less environmental restrictions.
Cheap imports can force U.S. companies out of business.
Foreign countries often accept lower salaries and poorer working conditions, meaning stuff can be made cheaper there.
Pork barrel projects
Job loss and wage decreases in developed countries.
Free-trade policies
enjoying increased international trade and rapid economic growth
Increased foreign investment.
reserves is the money that a bank holds aside just in case they run out, they'll have money to back them up.
When a bank runs out of reserves they can either get loans from the government or file bankruptcy.
the migration of workers
