Economics

Underdeveloped countries don't have the productive capacities necessary to take advantage of increasing international trade.

Environmental-protection laws can be bad for the economy because they may increase unemployment.

By seeking other trading partners

it could pursue a policy of national self-sufficiency

When it gives up less than others to engage in a particular type of production

The IMF wants to help fix the economies of countries that need its help. <apex>

Central banks control the foreign currency reserves that are used for international trade.
They also set each country's monetary policies.

Specialized production

International trade enables specialization, which brings increased efficiency and greater competition.

An improved climate for foreign investment

Foreign aid is initially provided for short term aid in emergencies. The goal of foreign aid is to help make people self-sufficient and able to take care of themselves.

To assure that international trade flows smoothly and freely

By assuring that producers will have open access to necessary resources

Foreign aid

Its main purpose is to promote development, not make profits.

Lower production costs help lure foreign investment.

Companies taking advantage of low labor costs don't make trouble for repressive governments.

To help manage the economies of struggling countries

Free-trade policies

When they can produce it at a lower opportunity cost than other countries.

They feel that globalization mainly serves the interests of the United States at the expense of poor countries.

Free-trade policies

Competition with lower wages and jobs leaving the country are some of the major drawbacks of globalization.

Lower labor costs in other countries lead to job less in the United States because it enables producers to undersell domestic producers.

Think that you're country A, wanting to buy pen and paper.

Country B produces 1 million pen and 1 BILLION paper

Country C produces 1 BILLION pen and 1 million paper

Or, country B has the absolute advantage over production of paper while

country C has the absolute advantage over production of pen.

Coming back our theory of economy of scale, we know that to a certain point, increased production would lead to lower average cost and thus, lower price.

This would mean that paper from country B is cheaper than country C whereas pen from country C is cheaper than country B.

Therefore, you would choose to trade paper with country B while trading pen with country C.

And this is why it is important to making economic choices.

people playing call of duty