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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.
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.
When it gives up less than others to engage in a particular type of production
Specialized production
An improved climate for foreign investment
There must be an international division of labor for a country to specialize its production.
The colonizers used the resources of their colonies to grow their own economies.
Lower production costs help lure foreign investment.
Control of the money supply determines how much money is available for international trade.
The mobility of goods, services, labor, and capital
Free-trade policies
Increased prices are not a hazard of globalization.
Competition with lower wages and jobs leaving the country are some of the major drawbacks of globalization.
Labor costs are lower in other countries.
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.
the migration of workers
by bringing wage reductions
