Grinding the poor

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The article "Grinding the Poor" cites three objections raised by skeptics to the idea that openness to foreign trade and investment always promotes economic growth. Which of the following is not one of those objections? If all poor countries tried to grow through trade at the same time, the price of their exports would be driven down on world markets. Multinational investment in poor countries might contribute to the exploitation of workers who are often forced to work in dangerous conditions for little pay. The inow of capital and FDI may produce little or nothing of value, and can contribute to increasing debt to foreigners. Trade can distort exchange rates to such an extent that poor countries' economies are destabilized.

Reference no: EM133311860

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