Evidence shows that flexible exchange rates have created a destabilizing speculation in the foreign exchange market.
Indicate whether the statement is true or false
Question 2
Which of the following does NOT explain why developing countries encouraged new manufacturing industries of their own in the mid 20th century?
A) They were cut off from traditional suppliers of manufactures during WWII.
B) Former colonial areas had something to prove; they wanted to attain the same income levels as their former rulers.
C) Leaders of these countries feared that their efforts to escape poverty would be doomed if they continues to specialize in primary commodity exports.
D) There was political pressure to protect these industries.
E) Developing countries ran out of the natural resources that traditionally made up the majority of their trade.
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