Which Trade Strategy Have Developing Countries Used to Restrict Imports

question 85

Multiple Choice

Which trade strategy have developing countries used to restrict imports of manufactured goods so that the domestic market is preserved for home producers, who thus can take over markets already established in the country?

• A) international commodity agreement
• B) export promotion
• C) multilateral contract
• D) import substitution

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Definitions:

Retained Earnings

The portion of a company's profit that is held or retained and saved for future use, reinvestment in the business, or to pay debt.

Stock Dividend

A dividend payment made in the form of additional shares rather than a cash payout, often reflecting a company's desire to reward shareholders without reducing cash on hand.

Cash Dividend

A payment made by a corporation to its shareholders, usually in the form of cash, as a distribution of profits.

Paid In Excess

Refers to the situation where an amount paid surpasses the required or expected amount, often used in the context of capital contributions over the par value of stock.