The Development Strategy Known as "Export-Oriented Industrialization" EOI) Involves

question 5

Multiple Choice

The development strategy known as "export-oriented industrialization" EOI) involves:

• A) a country producing for the world market rather than its domestic market
• B) holding down wages so as to make a country's goods cheaper and thus more competitive on the world market
• C) both of these
• D) neither of these

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Definitions:

Long Run

A time period in economics during which all factors of production and costs are variable, allowing for all adjustments to be made to achieve an equilibrium.

Competitive Increasing-cost Industry

An industry in which the entry of new firms causes the input prices to increase, leading to upward-sloping supply curves for the firms.

Long-run Equilibrium

A state in economics where all factors of production are fully adjusted to the market condition and all economic agents have no incentive to change their behavior.

Consumer Demand

The desire and willingness of consumers to purchase a certain quantity of goods or services at various price points, at a particular time.