Which of the following policy actions taken by richer countries would be most favored by pooer countries? (LO7) a) The elimination of agricultural subsidies b) The climination of tariffs on industrial goods c) More vigorous enforcement of environmental laws d) Government promotion of labor union membership

First, let's briefly review each policy action and summarize their potential impact on poorer countries: a) The elimination of agricultural subsidies: Richer countries often heavily subsidize their agricultural sector, which might lead to artificially low prices for these goods on the international market. This makes it difficult for poorer countries with unsubsidized farmers to compete. b) The elimination of tariffs on industrial goods: Richer countries often impose tariffs on imported industrial goods to protect their domestic industries. Removing these tariffs would open up the market for cheaper industrial goods from poorer countries, potentially boosting their export-oriented industries. c) More vigorous enforcement of environmental laws: Stricter environmental regulations in richer countries could lead to increased costs for industries, causing them to relocate to poorer countries where regulations are less strict. This could bring more jobs and investments to these countries; however, it might also lead to long-term environmental degradation. d) Government promotion of labor union membership: The promotion of labor union membership could improve working conditions and wages for workers in poorer countries. However, increased unionization might also lead to higher labor costs, making their industries less competitive globally.

Now, we need to weigh the potential benefits and drawbacks of each policy action for poorer countries: a) The elimination of agricultural subsidies would likely be beneficial as it would make their farmers more competitive on the international market, potentially leading to increased income and employment in the agricultural sector. b) The elimination of tariffs on industrial goods would likely lead to increased exports and employment in poorer countries' industries. This could also result in increased demand for raw materials, boosting their extraction industries. c) The enforcement of environmental laws might attract polluting industries to poorer countries, which could benefit their economies short-term, but it might also cause long-term environmental damage, harming people's health and quality of life. d) Government promotion of labor union membership might lead to improved working conditions but could negatively impact industries' competitiveness, potentially leading to decreased exports and employment.

Comparing the potential impacts of each policy action, it seems that both the elimination of agricultural subsidies (option a) and the elimination of tariffs on industrial goods (option b) would be highly beneficial for poorer countries. Since the question asks for the most favored policy action, we will choose the one that has a more widespread impact on their economies, considering that many poorer countries are export-oriented and rely on manufacturing and agricultural exports. Conclusion:

The most favored policy action taken by richer countries for poorer countries would be \(b)\) the elimination of tariffs on industrial goods, as it has the potential to significantly boost their export-oriented industries and create more employment opportunities. This policy action would benefit numerous sectors in poorer countries, making it the most favorable option among the given choices.