Why Did Import Substitution Fail as a Strategy in the Twentieth

question 39

Short Answer

Why did import substitution fail as a strategy in the twentieth century?

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Definitions:

Present Value

The present worth of a future sum of money or sequence of cash payments, reduced at a particular rate of interest.

PV

An abbreviation for present value, referring to the value today of a future payment or series of payments, adjusted for a specific rate of return.

Discount Rate

This rate, integral to discounted cash flow analysis, is employed for determining the present value of cash flows expected in the forthcoming periods.

Compounding

Compounding in finance refers to the process where an asset's earnings, from either capital gains or interest, are reinvested to generate additional earnings over time.