Question

If Malaysian companies are highly efficient in the production of textiles and U.S. companies are highly efficient in the production of computer software, under a _______ agreement, capital would move to Malaysia and be invested there to produce textiles, while capital from around the world would flow to the United States and be invested in its innovative software companies.

Answer 1

If Malaysian companies were more efficient in textile production and the U.S. was more efficient in computer software, they should sign a Free trade agreement.

What would a free trade agreement do?

A free trade agreement allows for countries to be able to trade without any restrictions.

Implementing a free trade agreement here would allow funds to freely move to Malaysia for textile production, and to the U.S. for software companies.

In conclusion, this is a free trade agreement.

Find out more on free trade agreements at brainly.com/question/2201430.