Recently there have been violent protests against the World Bank and the World Trade Organization. The protesters argue that these institutions promote free trade and also encourage corporations in rich countries to invest in poor countries. The protesters contend that these practices make rich countries richer and poor countries poorer. How would economists feel about these protesters' views?
A)They would disagree with the protesters because these practices will help make both rich and poor countries richer.
B)They would disagree with the protesters about free trade, but would agree with the protesters about corporate investment.
C)They would disagree with the protesters about corporate investment, but would agree with the protesters about free trade.
D)They would agree with the protesters.

Question

Quizplus · Accepted Answer

Economists generally support free trade as it can lead to increased economic growth and benefits for both rich and poor countries. Additionally, they would argue that corporate investment in poor countries can lead to job creation, improved infrastructure, and technology transfer, which can ultimately benefit the poor countries. However, economists would also acknowledge that there are potential negative consequences of free trade and foreign investment, such as increased inequality and exploitation, and that policies and regulations may be needed to address these issues. Overall, they would likely disagree with the protesters' views that these institutions and practices only serve to make rich countries richer and poor countries poorer.

Recently There Have Been Violent Protests Against the World Bank