Columbia's Jagdish Bhagwati criticizes United States administrations inability to distinguish between benefits of free trade ?
Correct answer: A. and the dangers of free capital movements for LDCs with poorly developed financial institutions
- A. and the dangers of free capital movements for LDCs with poorly developed financial institutions
- B. and the dangers of a trade deficit
- C. and the external openness of income growth among the poorest 40 percent of LDCs
- D. and MNC domination and its effects on income distribution
Explanation
Bhagwati separates the gains from free trade from the risks of unrestricted international capital flows, particularly where developing countries have weak financial institutions. A trade deficit is not the central distinction in this criticism.
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