Question

what is the comparative advantage ?

what is th principle of WTO ?

what is the absolute and relative poverty ?

Answer 1

1) Comparative advantage measures the relative differences in labor productivity between nations. The comparative advantage provides an idea on production of goods at a lower opportunity cost than another person, thus determines the direction of trade

2) Principles of WTO are as follows:

-- Non-Discrimination: Non-discrimination is a significant concept in WTO law and policy; and has also been addressed in relation to investment during several meetings of this working group since 1997. There are mainly two principles of non-discrimination in WTO law- the most-favoured-nation (MFN) treatment obligation; and the national treatment obligation

-- Enforceable and Binding Commitments: The members are disallowed to exceed the bound rates without negotiating with its trading partners

-- Transparency: The members of WTO must publish their trade regulations o ensure that decisions that impact trade are notified to Secretariat AND other members of WTO

-- Single Undertaking: It ensures that members of WTO join all the undertakings

-- Safety Valves: The government permits to restrict trade under specific circumstances.

3) Absolute poverty are the conditions of the poverty when a person cannot meet the most basic necessities to sustain life and other normal activities. Relative poverty is a concept where the standard of living is compared to the economic standards of living with other society members of the society they belong to.