One Structural Adjustment That Developing Countries Need to Make When

question 31

True/False

One structural adjustment that developing countries need to make when borrowing from the International Monetary Fund and World bank is to reduce or remove import tariffs.

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Definitions:

Demand Satisfaction

The degree to which the needs and desires of customers for a product or service are met by a company.

Over-Capacity

The condition of having more production or service capacity than currently needed, which can lead to inefficiencies, increased costs, and downward pressure on prices.

Flexible Capacity

The ability of a production system to adjust and scale its output up or down to match demand variations.

Production Flows

The sequence and processes involved in the production of goods, from raw materials to finished products.