Answer:
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.
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;
