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?

Question

Quizplus · Accepted Answer

Most economists believe that decreasing barriers to trade can promote economic growth by providing opportunities for specialization, access to larger markets, and increased competition. On the other hand, restricting foreign portfolio investment can discourage foreign investors from investing in the country, resulting in reduced capital inflows and potentially reducing growth opportunities.

A Country with a Relatively Low Level of Real GDP