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Economics

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Alphonso Nicolas

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โˆ™ 2021-10-26 18:34:30
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Cards in this guide (28)
What is the main purpose of the loans made by the World Bank

To help countries achieve sustainable development

Why does the IMF impose conditionality on countries that accept its loans

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

Why do central banks play an important role in the global economy

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

The existence of an international division of labor among countries enables those countries to have what

Specialized production

Why does the growth of international trade lead to a rising global standard of living

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

What factors allow the global economy to have specialized production

The international division of labor

Why does globalization lead to a reduction in wages in developed countries

Increased mobility allows producers to move jobs to lower-cost labor markets.

What does the World Bank hope will result from the loans it makes to developing countries

An improved climate for foreign investment

What is the main goal of the WTO

To assure that international trade flows smoothly and freely

What was the result of developed countries extracting resources from their colonies

There was a one-way flow of wealth favoring the colonizers.

Why does globalization lead to increasing environmental damage

Environmental-protection regulations increase compliance costs and decrease economic competitiveness.

Globalization creates greater what

Interconnections among the people and economies of the world

Why does globalization give countries an incentive to reduce wages for their workers

Lower production costs help lure foreign investment.

What is the main purpose of foreign aid

Alleviate poverty and underdevelopment

Why does the IMF impose conditions on its loans

To help manage the economies of struggling countries

Because most developing countries have weak domestic industries they do not benefit from what

Free-trade policies

Why do some countries fear increasing economic interdependence

Interdependence involves a loss of control over the national economy.

When does country X have a comparative advantage in the production of coffee

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

Why do many people object to globalization

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

If developing countries have weak domestic industries they do not benefit from what

Free-trade policies

Does globalization benefit us

Some people will say it does, and some will say it won't. But really, globalization is different for everyone.

What has been the main drawback of globalization for the United states

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

Which of these describes how a five or one ARM mortgage works

The interest rate is fixed for five years and then changes every year afterward describes how a five or one arm mortgage works.

Why do lower labor costs in other countries lead to job loss in the United States

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

What does absolute advantage have to do with making economic choices

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.

Under what conditions does a nation have an absolute advantage in the production of a product

When a nation can use fewer resources to produce the same amount of a product, it has an absolute advantage in the production of that product.

Why don't developing countries usally benefit from free trade policies

Many developing countries do not benefit from free trade policies, because their industries are to weak to compete in the international market.

What would cause job loss in the united states

people playing call of duty

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