A country's foreign exchange reserves refers to A) the ...

[maegan_martin]

A country's foreign exchange reserves refers to
 
  A) the currency of the nation itself.
  B) the country's holdings of gold and internationally accepted currencies.
  C) the total amount of a country's currency held by other nations.
  D) the country's Special Drawing Rights (SDRs) at the IMF.

Question 2

Why do both developed and less-developed countries protect clothing and textiles heavily?
 
  What will be an ideal response?

[Kdiggy]

Answer to Question 1

B

Answer to Question 2

For developed countries, comparative advantage has been lost in these labor-intensive industries. For less-developed countries, these are major export sectors that also have a significant domestic market share, and so it is desirable to protect domestic markets while exporting these goods (in which they have a comparative advantage).

[maegan_martin]

Thanks for the timely response, appreciate it

[sarah_brady415]

Wow, this really help