Asked by Poppin galaxy on Jul 02, 2024
A country with a relatively low level of real GDP per person is considering adopting two policies to promote economic growth. The first is to decrease barriers to trade. The second is to restrict foreign portfolio investment. Which of these policies do most economists say promote growth?
A) Both the first and the second
B) The first but not the second
C) The second but not the first
D) Neither the first nor the second
Foreign Portfolio Investment
Investment in financial assets from another country, such as stocks or bonds, without seeking control over the companies issuing them.
Barriers To Trade
Restrictions that hinder international trade, including tariffs, quotas, and non-tariff barriers.
- Examine the impact of international commerce and investment on economic progress.
- Evaluate the repercussions of public policies on economic advancement, with an emphasis on trade obstructions and capital transfers.
Learning Objectives
- Examine the impact of international commerce and investment on economic progress.
- Evaluate the repercussions of public policies on economic advancement, with an emphasis on trade obstructions and capital transfers.