Question

Which circumstance would give country x and absolute advantage over country y in the production of clothing?

its production costs for clothing were the lowest in the world

its tariffs on clothing were the highest in the world

it had the largest clothing industry in the world

it had the lowest minimum wage in the world


which describes the role of the world trade organization in the global economy?

coordinate banking regulations

provide short term emergency loans

provide long term development loans

generate multilateral agreements


why does the IMF impose conditions on its loans?

promote the free market system

rid the world of command economies

help manage the economies of struggling countries

impose uniform regulations on the international banking system


which describes the goal of international foreign aid?

eliminate poverty

provide emergency relief

punish an o

Answer 1

1. its production costs for clothing were the lowest in the world
2. generate multilateral agreements
3. help manage the economies of struggling countries
4. eliminate poverty

Answer 2

A. Its cost of production for clothing were the lowest in the world.

B. Generate multilateral agreements.

C. Help manage the economies of struggling countries.

D.Provide emergency relief.

Step-by-step explanation:

A.What is meant by absolute advantage in economics?

The capacity of an individual or agent to produce a larger quantity of goods than its competitors, using the same amount of resources.

Adam Smith a Scottish economist introduced absolute advantage in 1776.

He further argued that to achieve absolute advantage lower cost of production would consequently produce lower marginal cost, when:

few materials are used in production,

cheaper materials are used,

fewer hours of production,

cheaper workers in hourly wage rate for production.

B. What is the role of WTO in global economy?

WTO was founded in 1995, to promote multilateral international trade amongst nations through:

Free trade through the discussion and agreement of progressive tariff reduction;

Provides legal structure for discussing trade disputes;

Promoting indiscrimination of trade between nations;

Promoting fair competition between nations;

Thus, global economic development

C. IMF

Formed in 1945, with the objective of fostering global monetary cooperation;

Secure financial stability;

Increase employment and economic development;

Facilitate international trade;

Reduction of poverty in poorer nations by giving out loans under pre agreed conditions.

D. Between 1920 and 1930s countries like Germany, France and England started giving out regular financial aid to their African, Latin and Asian colonies with the principal aim of:

Bargaining for economic influence in the struggling receiving economies;

Helping ailing economies especially in periods of crisis/emergencies;