The Industrialization Argument for Trade Protection in Developing Countries Is

question 93

Multiple Choice

The industrialization argument for trade protection in developing countries is based on the assumption that ________.

• A)the protected industry will become competitive over time with economies of scale
• B)unemployment and underemployment exist in rural areas, so little agricultural output is lost as people move into industrial jobs
• C)subsidizing production is a better means of protection than limiting imports
• D)it is better to depend on buying agricultural surpluses from developed countries than to produce these agricultural goods

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Definitions:

EBIT

Earnings Before Interest and Taxes - a measure of a firm's profit that includes all expenses except interest and income tax expenses.

Capital Structure

The mix of debt, equity, and other securities that a company uses to finance its overall operations and growth.

Lend Out

The act of providing money or assets to another party with the expectation that it will be returned or repaid, often with interest.

Debt Issue

The raising of funds through the sale of bonds, notes, or other forms of debt to investors.