Question

Senator Noitall says that in order to help poor countries develop, the United States should:

1. Encourage poor countries to allow U.S. and other foreign firms to build and operate businesses in their country;
2. Reduce or eliminate subsidies to U.S. producers when poor countries have a comparative advantage producing goods the U.S. subsidizes;
3. Work to promote political stability in poor countries, and;
4. Reduce poor countries reliance on market forces in their economies.
How many of these ideas are likely to help poor countries grow?

Answer 1

Three out of the four recommendations by Senator Noitall could potentially help poor countries grow, specifically foreign investment, reducing US subsidies when appropriate, and promoting political stability. However, reducing reliance on market forces goes against the consensus on market-oriented growth strategies for developing economies.

Step-by-step explanation:

The recommendations provided by Senator Noitall offer a mix of strategies that could support the economic growth of poor countries. Encouraging foreign investment by allowing U.S. and other foreign firms to operate can bring in capital, technology, and expertise, which are crucial for development. It is important, however, that these investments benefit the local economy without causing exploitation. Reducing or eliminating subsidies to U.S. producers, when poor countries have a comparative advantage, could significantly benefit those countries by making their goods more competitive in the global market.

Promoting political stability in poor countries creates an environment conducive to economic activities and can attract both foreign aid and investment. This aligns with the understanding that a stable macroeconomic and political environment is key for growth. On the other hand, reducing reliance on market forces may not be as beneficial, considering that market-oriented policies can lead to more efficient allocation of resources and greater economic dynamism. Encouraging a focus on health, education, and a stable macroeconomic and political environment in line with market principles tends to attract more sustainable economic development.

In conclusion, three out of the four recommendations are likely to help poor countries grow, with the promotion of political stability and market-oriented policies being particularly impactful. It's equally critical to ensure that any foreign involvement is equitable and supports the long-term interests of the host country.

Answer 2

3. Work to promote political stability in poor countries.

Step-by-step explanation:

Senator Noitall notes the need of the need for United States to help develop poor countries. According to Senator Noitall, the best possible method to bring about this development would be to promote political stability in these countries as these countries are frot with political instability which has hundred development to a large extent. Countries such as iraq would be an example of countries impoverished by political instability.