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Questions and Answers
What is the main disadvantage of Import Substitution as a development strategy?
What is the main disadvantage of Import Substitution as a development strategy?
- Lower average marketing cost
- Dependency on the government for support (correct)
- Higher quality local products
- Limited market competition
Which argument supports Import Substitution as a development strategy?
Which argument supports Import Substitution as a development strategy?
- Higher inflow of foreign currency
- Lower raw materials cost
- Higher standard of living (correct)
- Lower unemployment rate
What is the main focus of Export Promotion as a development strategy?
What is the main focus of Export Promotion as a development strategy?
- Substitute imports with domestic production
- Leverage comparative advantage in global markets (correct)
- Promote rapid industrialization through high trade barriers
- Encourage importation for variety
Which argument supports Export Promotion as a development strategy?
Which argument supports Export Promotion as a development strategy?
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What is the Infant Industry Argument in the context of trade policies?
What is the Infant Industry Argument in the context of trade policies?
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Which aspect does Import Substitution aim to address?
Which aspect does Import Substitution aim to address?
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What distinguishes the development strategy of Export Promotion from Import Substitution?
What distinguishes the development strategy of Export Promotion from Import Substitution?
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What is a common misconception about Import Substitution as a strategy?
What is a common misconception about Import Substitution as a strategy?
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How does Export Promotion contribute to social welfare?
How does Export Promotion contribute to social welfare?
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Which strategy advocates for setting high trade barriers to protect local industries?
Which strategy advocates for setting high trade barriers to protect local industries?
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