What criticism does Columbia’s Jagdish Bhagwati make regarding U.S. administrations' understanding of free trade?

Balance of Payments, Aid and Foreign Investment MCQs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

Balance of Payments, Aid and Foreign Investment

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Subject
Balance of Payments, Aid and Foreign Investmenteconomics-mcqs › balance-of-payments-aid-and-foreign-investment
Published
2 Jun 2019
Last updated
28 May 2026

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Explanation

Jagdish Bhagwati points out that U.S. administrations often do not distinguish between the positive effects of free trade and the potential dangers of free capital movements, especially in less developed countries that have fragile financial institutions. This confusion can lead to misguided policies that fail to protect vulnerable economies.

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