Globalization must be expected to influence the distribution of income as well as its level. So far as the distribution of income between countries is concerned, standard theory would lead one to expect that all countries will benefit. Economists have long preached that trade is mutually beneficial, and most of us believe that the experience of widespread growth alongside rapidly growing trade in the postwar period serves to substantiate that. Similarly most FDI goes where a multinational has intellectual capital that can contribute something to the local economy, and is therefore likely to be mutually beneficial to investor and recipient. And a flow of capital that finances a real investment is again likely to benefit both parties, since the yield on the investment is expected to be higher than the rate of interest the borrower has to pay, while that rate of interest is also likely to be higher than the lender could expect at home since otherwise there would have been no incentive to send it abroad. Loose talk about free trade making the rich countries richer and poor countries poorer finds no support in economic analysis.
The options for this question are:
<em>A) Congress</em>
<em>B) Select comittee</em>
<em>C) Party Caucus</em>
<em>D) Legislative district</em>
The correct answer is A.
The House of Representatives and the Senate make up Congress. Congress is a bicameral body that forms the legislative branch of the US government.
The House of Representatives is made up of 435 representatives and the Senate is made up of 100 representatives.
This bicameral organization originated in the Connecticut Compromise during the Constitutional Convention (1787) to resolve the problem of representation in Congress. This was made to balance the tensions in representation caused by different numbers in population and different economic powers of the states.
