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The world bank lends money to memeber nation so that they could be carry out the work of public importance and usefulness.
Increased mobility allows producers to move jobs to lower-cost labor markets.
Countries with well-established infrastructure and productive capacities have more competitive industries.
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.
Control of the money supply determines how much money is available for international trade.
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.
When they can produce it at a lower opportunity cost than other countries.
Free-trade policies
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
