Asked by Gargi Patil on May 14, 2024
Verified
When a developing country relies on import substitution,_____.
A) it capitalizes on the gains from specialization and comparative advantage
B) it replaces high-cost domestic goods with low-cost foreign goods
C) domestic producers,shielded from foreign competition,usually become more efficient
D) other countries often retaliate with their own trade restrictions
E) it concentrates on producing only for the international market
Import Substitution
An economic policy aimed at replacing foreign imports with domestic production to promote local industries.
Foreign Competition
Competition that domestic companies face from companies located in other countries, influencing markets, pricing, and innovation.
Trade Restrictions
Measures such as tariffs, quotas, and embargoes that countries impose to control the amount of trade across their borders.
- Discern the upsides and downsides of employing export promotion and import substitution tactics for the enhancement of economic conditions.
- Examine how government intervention impacts economic strategies like export promotion and import substitution.
Verified Answer
Learning Objectives
- Discern the upsides and downsides of employing export promotion and import substitution tactics for the enhancement of economic conditions.
- Examine how government intervention impacts economic strategies like export promotion and import substitution.
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