Final answer:
Economic planning helps to remove regional imbalance primarily by promoting investments in underdeveloped regions, which leads to job creation and local industry development. Encouraging globalization tends to increase trade levels, while promoting protectionist policies may lead to trade imbalances.
Step-by-step explanation:
Economic planning contributes to removing regional imbalance by promoting investments in underdeveloped regions. When a government or economic body recognizes imbalances, such as disparities in wealth, economic activity or infrastructure between regions, they may use economic planning tools to address these issues. Interventions can include allocating public investment for infrastructure development, offering tax incentives for businesses to operate in certain areas, and setting up economic zones to attract foreign investment.
While redistributing wealth and imposing taxes on affluent regions can play a role, these are often seen as short-term fixes or mechanisms of redistribution that might not result in sustained economic growth in underdeveloped regions. On the other hand, promoting investments leads to the creation of jobs, the development of local industries, and potentially stimulates a self-sustaining economic growth cycle in those regions.
When considering trade, maintaining peace and economic prosperity, encouraging globalization, and restraining trade liberalization can have different impacts on trade levels. For example, encouraging globalization tends to lead to a higher level of trade for an economy by increasing access to international markets and fostering cross-border economic cooperation. In contrast, promoting protectionist policies might lead to a greater imbalance of trade by restricting imports and exports through tariffs and quotas, which can limit the benefits of trade for the economy.