Question

free market proponents argue that ____________ benefits far more people than it hurts and that it has resulted in a reduction in global poverty levels, particularly in developing nations.

Answer 1

Free market proponents argue that free trade and the effects of comparative advantage benefit more people than they hurt and have resulted in a reduction in global poverty levels, particularly in developing nations.

Step-by-step explanation:

Free market proponents argue that free trade and the effects of comparative advantage benefit more people than they hurt and have resulted in a reduction in global poverty levels, particularly in developing nations.

This argument is based on the belief that free markets encourage economic growth, job creation, and innovation. When countries engage in international trade, they can specialize in producing goods and services in which they have a comparative advantage, allowing them to maximize their efficiency and productivity.

For example, a developing country that has a comparative advantage in agriculture can focus on producing agricultural products and export them to other countries. This creates jobs in the agriculture sector and generates income for farmers. The country can then use the revenue from exports to invest in infrastructure, education, and healthcare, ultimately improving the standard of living for its population.

Answer 2

Proponents of a free market argue that globalization improves the standard of living across the globe, especially in developing nations, by increasing productivity through comparative advantage. It also encourages the support for market-friendly institutions and can give low-income countries an advantage in future economic growth. However, policies aimed at reducing inequality are crucial for maintaining political support for this economic system.

Step-by-step explanation:

Free market proponents argue that globalization benefits far more people than it hurts and that it has resulted in a reduction in global poverty levels, particularly in developing nations. Through the lens of globalization, free trade and the application of comparative advantage have significantly increased our productivity on a global scale, thereby improving the average standard of living for countries worldwide. Optimists of globalization suggest that as nations experience economic growth and observe the growth of others, they are likely to adopt and support market-friendly institutions that could further enhance their standard of living.

Furthermore, arguments in support of globalization posit that low-income countries could actually have an advantage in achieving greater worker productivity and economic growth in the future. This is because globalization can lead to exponential development, create international empowerment, and potentially increase wealth. However, it's also important to address inequality and poverty to sustain political support for a market economy. By implementing policies to reduce inequality, the support for market operations is bolstered, as it builds societal trust in allowing markets to function efficiently without the need for restrictive interventions that could halt economic progress.