Question

Senator Smith says that in order to help poor countries develop, the United States should:_______. 1. Prevent U.S. corporations from investing in poor countries because they take profits that the poor countries should have; 2. Not import goods from poor countries that use child labor; 3. Work to promote political stability in poor countries; 4. Reduce poor countries’ reliance on market forces in their economies. How many of these ideas are likely to help poor countries grow? a. 2 b. 1 c. 4 d. 3

Answer 1

Answer:

B) 1

Explanation:

The only idea that can actually help a poor country's economy to grow, is to:

• 3. Work to promote political stability in poor countries

Politically stable countries and specially democracies tend to achieve higher growth rates.

the other arguments were wrong because:

1. Prevent U.S. corporations from investing in poor countries because they take profits that the poor countries should have; FALSE, because foreign investment and trade benefits both rich and poor countries.

2. Not import goods from poor countries that use child labor; FALSE, unless economic conditions improve in countries that use child labor, not buying goods from them will only hurt them more.

4. Reduce poor countries’ reliance on market forces in their economies. FALSE, market economies tend to grow and develop faster than command economies.