Final answer:
Developed countries desire developing countries to liberalize their trade for smoother capital movement, market access, and spreading technologies, while developing countries should seek (a) access to advanced technology and (d) increased foreign aid in return, not lower labor costs or economic dependence.
Step-by-step explanation:
Developed countries want developing countries to liberalize their trade and investment in order to facilitate smoother influx of capital, access to new markets for their goods and services, and the spread of technologies. They might also seek to reduce costs of goods by outsourcing production to nations with lower labor costs. In this context, developing countries should demand certain concessions in return such as access to advanced technology which helps boost their productivity and competitiveness or increased foreign aid for supporting development endeavors.
While lowering labor costs may seem like a benefit, it can lead to a race to the bottom where countries compete by cutting workers’ wages; hence, it is not a demand that developing countries should prioritize. Economic dependence is also not desirable as it can undermine the sovereignty and economic stability of a developing country. Instead, crafting policies fostering education and a skilled workforce, improving health standards, and creating stable political and economic environments will attract more foreign investment and aid, creating a pathway from low-income status to middle-income, and eventually achieving higher income through innovation and technology.