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

question 294

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) Multilateral contract

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Definitions:

Wage Rates

The standardized amount of compensation received by a worker per unit of time or per task performed.

High Wages

A level of income that is significantly above the average or minimum wage.

Protectionism

Economic policy of restricting imports from other countries through methods such as tariffs and quotas, intended to protect domestic industries from foreign competition.

Infant Industries

New or emerging industries in a country that are protected by the government through subsidies or tariffs to promote growth.