The Following Situation Is an Example of an Import Substitution

question 49

True/False

The following situation is an example of an import substitution strategy. Costa Rica has a comparative advantage in the production of coffee and, as a result, the Costa Rican government grants incentives to coffee planters to improve their performance in the international marketplace.

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Definitions:

Health Care Costs

The expenses associated with medical treatment, including the costs of hospitalization, medications, preventive care, and medical devices.

Per Capita GDP

Gross Domestic Product per person, a measure comparing the economic output of a country relative to its population size.

Personal Disposable Income

Personal disposable income is the amount of money that households have available for spending and saving after income taxes have been accounted for.

Savings

Money set aside for future use rather than spent immediately, often in a bank or other financial institution.