Industrially advanced countries can help developing countries by
A) establishing price supports for the products produced by DVCs.
B) increasing tariffs and quotas on products produced by DVCs.
C) increasing the ﬂows of private capital to DVCs.
D) increasing control over DVCs' capital markets.

Question

Quizplus · Accepted Answer

Increasing the flows of private capital to DVCs can help them in their economic development and growth. This can be done through foreign direct investment, portfolio investment, and other financial flows. It can provide the necessary capital to invest in infrastructure, technology, and education, which can help boost the productive capacity of the country and stimulate economic growth. Options A and B can limit the market access for DVCs and discourage their export earnings. Option D can impede the autonomy and control of DVCs over their own economic policies and financial sector.

Industrially Advanced Countries Can Help Developing Countries by