If a rich country reduced subsidies to domestic producers of goods that poor countries have a comparative advantage producing, the standard of living in these poor countries would likely rise.

Question

Quizplus · Accepted Answer

Reducing subsidies in the rich country would make goods from poor countries more competitive in global markets, likely increasing exports and income for these countries, thus potentially raising their standard of living.

If a Rich Country Reduced Subsidies to Domestic Producers of Goods