Question

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

1) Prevent U.S. corporations from investing in poor countries because they take profits that the poor countries should have;
2) reduce or eliminate subsidies to U.S. producers when poor countries have a comparative advantage producing those goods U.S. subsidizes;
3) Work to improve agriculture in poor countries; and
4) Reduce poor countries reliance on market forces in their economies.

Which of these ideas is most likely to help poor countries grow?

Answer 1

These two are very good ideas to reduce poverty in poor countries:

2) reduce or eliminate subsidies to U.S. producers when poor countries have a comparative advantage producing those goods U.S. subsidizes.

3) Work to improve agriculture in poor countries.

Step-by-step explanation:

Numeral 2 is a good idea because it would help poor countries produce those goods they have a comparative advantage in, and export some of the production to other countries, including the U.S., bringing much needed income to the population.

Numeral 3 is also a very good idea to implement, because poor countries usually have inefficient agriculture, in some cases, so inefficient that a part of the population has poor nutritrion. Improving agriculture in poor countries helps feed the population, and also export the excess produce abroad.