Economics

Labor standards in trade are typically opposed by most developing coun

Labor standards in trade are typically opposed by most developing countries who believe that they will be used A) to further neo-imperialist colonial exploitation. B) to charge these countries with crimes against child-labor standards at the Hague. C) as a protectionist tool by import-competing producers in industrial countries. D) as a means of spreading U.S. […]

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Date: September 10th, 2020

An examination of the Ricardian model of comparative advantage yields

An examination of the Ricardian model of comparative advantage yields the clear result that trade is (potentially) beneficial for each of the two trading partners since it allows for an expanded consumption choice for each. However, for the world as a whole the expansion of production of one product must involve a decrease in the […]

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Date: September 10th, 2020

Why is it important to understand fixed exchange rates in the modern g

Why is it important to understand fixed exchange rates in the modern global economy? What will be an ideal response?   ANSWER Fixed rates continue to be important for four reasons: 1. Managed floating: Central banks intervene in foreign exchange markets. 2. Regional currency arrangements: Some countries peg their currency to another currency. 3. Developing […]

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Date: September 10th, 2020

To help developing nations strengthen their international competitiven

To help developing nations strengthen their international competitiveness, many industrial nations have granted tariff reductions to developing nations under the A) international commodity agreements program. B) multilateral contract program. C) generalized system of preferences program. D) export led growth program. E) import substitution policy.   ANSWER C

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Date: September 10th, 2020