Author Question: When a developing country relies on export promotion, a. it concentrates on producing for its ... (Read 64 times)

urbanoutfitters · **on:** Jun 30, 2018

When a developing country relies on export promotion,
a. it concentrates on producing for its domestic market
b. it builds its technological and educational base and then can make more complex products for export
c. domestic producers have sufficient protection that they can afford to become inefficient
d. its government must intervene more in markets
e. None of the answers is correct

Question 2

When a developing country relies on import substitution,
a. it sacrifices the gains from specialization and comparative advantage
b. replaces low-cost foreign goods with high-cost domestic goods
c. domestic producers, shielded from foreign competition, usually fail to become efficient
d. other countries often retaliate with their own trade restrictions
e. All of the answers are correct