1- One of the reasons why nations encourage the formation of joint venture is to

Question

1- One of the reasons why nations encourage the formation of joint venture is to avoid investment restrictions in developing countries. True or False?

2- The difference between the General Agreement on Tariffs and Trade (GATT) and the World Trade Organization (WTO) is the fact that the former compared to the latter went beyond tariff reductions to liberalize various nontariff trade barriers. True or False?

3- Developing countries face the challenges of worsening terms of trade but enjoy market stability. True or False?

4- Whenever international labor migration takes place, there is an increase in output and wages. True or False?

Explanation / Answer

1. True because due to higher tariff different countries are not able to trade as much as they want so different countries form joint venture.

2. True

3. False. Terms of trade of countries worsen due to international trade but there is no market stability due to this in the country.

4. False because migration makes the market wage equal in both countries. Country in which wage is higher get down due to migration of people in that country increases. Similarly, wages in countries increases from which there huge migration due to lower wage.

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