The Disappointment with Import-Substitution Policies Is in Part Because

question 24

Multiple Choice

The disappointment with import-substitution policies is in part because

• A) of the rapid and continuous growth record of South American countries.
• B) many countries pursuing this strategy experienced stagnation in their growth.
• C) this policy is inconsistent with sophisticated economic growth models.
• D) this policy tended to create world-class industrial competitors.
• E) of the financial investment lost by the U.S.

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Definitions:

Product Development

The process of designing, creating, and marketing new products or improving existing ones to satisfy customer needs and gain a competitive advantage.

Diversification

A risk management strategy that mixes a wide variety of investments within a portfolio.

Product Development

The creation of new products or the improvement of existing ones, involving idea generation, design, testing, and commercialization processes.

Market Penetration

An indicator of the total sales or use of a product or service relative to the maximum potential market for that product or service.