1. Explain the advantages of specialization in int.

trade and investment

a. There are many advantages of international trade and investment; Its
positive effect in Economies of scale and efficiency, countries produces
goods and services they do best, and this leads to efficiency and
economies of scale, therefore reducing the cost and increasing the output
of production; it creates job, specialization increases output, therefore, it
could lead to more investment and thus many jobs are created; allow
more international trade to take place, goods and services produced
under the most efficient conditions can be traded across border and as a
result many countries can benefit from it.
2. What is the concept of comparative advantage and explain briefly?
a. An economy has a comparative advantage if it can produce a specific good or
service at a lower opportunity cost than its trading counterparts. Comparative
advantage is a theory that explains why businesses, nations, or people might
gain from trade.What is the role of IMF.
a.
3. What is the Impact of European currency and other currencies in international
trade?
a. Exchange rate changes within the euro region are no longer a cost due to
the existence of the euro. Consequently, the euro area's consumers and
businesses are shielded from the pricey fluctuations in currency markets
that, in some nations, have hist orically undermined investor confidence,
deterred investment, and contributed to economic instability. Other
Currenciesor foreign exchange rate is strongly correlated with competing
financial markets and therefore with international trade. It can have
negative and positive effects, but it is crucial to create circumstances that
sustain this competitiveness (Toderascu &
Firtescu, 2018).
4. The IMF regularly discusses policy with the governments of its member nations
in order to preserve stability and avert crises in the global monetary system. It
examines economic conditions and advises measures that permit sustainable
growth. The IMF also keeps track of regional and international financial and
economic developments.
1.