Economics

Speculators from rushing into and out of a country's market and disrupting its economy./

To help countries achieve sustainable development

Countries with well-established infrastructure and productive capacities have more competitive industries.

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

Its main purpose is to promote development, not make profits.

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

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.