The world bank lends money to memeber nation so that they could be carry out the work of public importance and usefulness.
Central banks control the foreign currency reserves that are used for international trade.
They also set each country's monetary policies.
Protecting the environment increases production costs and reduces competitiveness.
International trade enables specialization, which brings increased efficiency and greater competition.
Increased mobility allows producers to move jobs to lower-cost labor markets.
To assure that international trade flows smoothly and freely
Countries with well-established infrastructure and productive capacities have more competitive industries.
By assuring that producers will have open access to necessary resources
There must be an international division of labor for a country to specialize its production.
Its main purpose is to promote development, not make profits.
Missed opportunities to earn income
Brand new items to replace the items lost (APE*)
To make decisions that maximize benefits.
Rational and Subjective.
Objective and systematic
pleasure (benefit) and pain (cost)
calculating and coherent
Rational and structured =making a list of costs and benefits
Lower production costs help lure foreign investment.
Companies taking advantage of low labor costs don't make trouble for repressive governments.
Control of the money supply determines how much money is available for international trade.
To help manage the economies of struggling countries
A low standard of living.
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.
When they can produce it at a lower opportunity cost than other countries.
Comparative advantage exists when a country has a margin of superiority in the production of a good or service i.e. where the opportunity cost of production is lower.
- Comparative Advantage
â€¢ A nation having absolute disadvantages in the production of two goods with respect to another nation has a comparative or relative advantage in the production of the good in which its absolute disadvantage is less
Increased security concerns
Finding a roommate
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.
we dont knw so dont ask