Senator Smith Says That in Order to Help Poor Countries

question 119

Multiple Choice

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 subsidizes to U.S. producers when poor countries have a comparative advantage producing those 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?

• A)1
• B)2
• C)3
• D)4

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Definitions:

Fair Market Value

The price at which an asset would sell under normal market conditions, reflecting the value between willing buyers and sellers.

Operating Policies

Guidelines and regulations formulated by an organization to govern its operational activities and decision-making.

50% Interest

Ownership interest that represents half of the equity capital or voting power in an entity or investment.

Voting Stock

Shares that give the shareholder the right to vote on corporate matters, such as electing the board of directors.