Prof. Stiglitz argued that developing countries should be given some favor (leeway) to pursue their pro-development policies as one of reforms aiming at addressing unfair trade agreements (arrangements) between the advanced industrial countries and the poorest developing countries. Why is this idea acceptable? Which of the following is LEAST appropriate for an answer?
Prof. Stiglitz argued that developing countries should be given some favor (leeway) to pursue their pro-development policies as one of reforms aiming at addressing unfair trade agreements (arrangements) between the advanced industrial countries and the poorest developing countries. Why is this idea acceptable? Which of the following is LEAST appropriate for an answer?
| A. |
Because developing countries do not necessarily need to keep the principle of the most-favored-nation principle (i.e., non-discrimination principle) as member countries of the WTO considering their inferior and poor economic circumstances. |
| B. |
Because developing countries can use pro-development strategies such as temporary industrial policies under which they can facilitate rapid development of their favored industries with subsidies. |
| C. |
Because allowing the developing countries to pursue their pro-development policies is one of effective way of their catching up rapidly with the advanced industrial countries. |
| D. |
Because the current WTO trade rules allow developing countries to use a variety of instruments such as subsidies to help encourage industrialization given that economic development is hard enough. |
A, C is not correct.
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