Which Is NOT a Cause of Combined and Uneven Development

question 32

Multiple Choice

Which is NOT a cause of combined and uneven development?

• A)The commodification of agriculture increases the production of food for export and decreases production for local consumption.
• B)Multinational corporations borrow investment capital locally, absorbing resources that could otherwise be used for development of the domestic economy.
• C)The institution of tariffs to protect developing industries undermines world markets for the developing country in other industries.
• D)Multinational corporations use transfer prices that deplete the resources of Third World nations.
• E)Multinational corporations export their profits to advanced industrial countries.

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Definitions:

Disposable Income

The amount of income left to an individual after taxes have been paid, available for spending and saving.

Control

In an experiment or study, the standard to which comparisons are made; in management, the process of directing and regulating processes, systems, or organizations.

Net Investment

The aggregate investment in new capital assets less the depreciation charges on the current capital assets.

Gross Investment

The total amount spent on purchases of new capital and on replacing depreciated capital within an economy during a specific period.