Regional trading blocs are characterized by:

• A.liberalized internal trade, fixed exchange rates, and close monetary coordination
• B.common currency, fixed exchange rates and close monetary coordination
• C.common currency, fixed exchange rates and common tariff walls against non-member countries
• D.liberalized internal trade, common tariff walls against non-member countries, and close monetary coordination

See Figure 1 attached. According to the Factor Endowment Trade Theory, before trade, the less developed world will produce at point_________ and the rest of the world will produce at point__________.

***Reference picture added***

• A.none of the above
• B.C, C'
• C.B, B'
• D.A, A'

During the 1980s debt crisis, countries with an excess of imports over exports were reluctant to borrow from the IMF because:

• A.none of the above
• B.OPEC prevented them from doing so
• C.the World Bank prevented them from doing so
• D.of the painful policy adjustments the IMF would make them do

Manufacturing Less Developed World Less developed world domestic price ratio, Pal'ml International price ratio, Pal/Pmi Agriculture Rest of the World Rest of the world domestic price ratio, Par'mr Manufacturing _____ International price ratio, Pai/Pmi Agriculture