Which of the Following Might Be a Washington Consensus Policy

question 35

Multiple Choice

Which of the following might be a Washington Consensus policy recommendation to a less-developed country that would be opposed by a supporter of import substitution policy?

• A) investing heavily in domestic agriculture
• B) raising tariffs to reduce foreign imports
• C) reducing state power
• D) promoting private domestic industry

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Definitions:

Pretax Proceeds

The amount of money generated from a sale or transaction before any taxes are deducted.

Working Capital

Working capital, rephrased from net working capital, indicates the liquidity available to a business for day-to-day operations, calculated as current assets minus current liabilities.

Net Working Capital

A measure of a company's short-term financial health, calculated as current assets minus current liabilities.

Inventory

The raw materials, work-in-process products, and finished goods that are considered a part of a business's assets that are ready or will be ready for sale.