Which Industrialization Policy Used by Developing Countries Places Emphasis on the Comparative

question 21

Multiple Choice

Which industrialization policy used by developing countries places emphasis on the comparative advantage principle as a guide to resource allocation?

• A) export promotion
• B) import substitution
• C) international commodity agreements
• D) Infant Industry promotion
• E) intra-industry trade practice

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Definitions:

Stock Dissipation Rate

The rate at which a stock or resource diminishes due to use or other factors.

Net Present Value

A method used in finance to assess the value of an investment by calculating the present value of its expected future cash flows minus the initial investment.

Policy Change

Modifications or adjustments to existing rules, procedures, or regulations within an organization or government.

Mandatory Separation

A policy or regulation requiring a business to divide or split its operations, often for anti-monopoly or regulatory compliance reasons.