What Is the Main Reason for the Failure of Import-Substitution

question 73

Multiple Choice

What is the main reason for the failure of import-substitution strategies to generate rapid economic growth?

• A) Deteriorating terms of trade
• B) Scarce natural resources
• C) Inefficient allocation of resources
• D) Lack of self-interested behavior by entrepreneurs
• E) Insufficient subsidies to domestic producers

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Definitions:

Advertising

A form of marketing communication used to promote or sell a product, service, or idea through various mediums, such as TV, radio, print, or online platforms.

Nonpersonal Selling

Selling tactics that do not involve face-to-face interaction with consumers, such as advertising, direct mail, and online marketing.

Discount Pricing

A strategy where products or services are sold at a reduced price to attract customers and increase sales volume.

Special Price Reductions

Discounts offered on goods or services beyond the usual pricing, often to promote sales or clear inventory.