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☆☆☆☆☆Speculators from rushing into and out of a country's market and disrupting its economy./
To help countries achieve sustainable development
Specialized production
An improved climate for foreign investment
Environmental-protection regulations increase compliance costs and decrease economic competitiveness.
Flexible expenses vary over time.
Rationing
It could pursue a policy of national self-sufficiency.
The IMF wants to fix the economies of countries that need its help.
When a country has an absolute advantage in production of that good it may specialize in producing that good.
Free-trade policies
Some northern states made slavery against the law.
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.
Many developing countries do not benefit from free trade policies, because their industries are to weak to compete in the international market.
