(A)Why Did Large Developing Nations Generally Follow a Policy of Import

question 19

Essay

(a)Why did large developing nations generally follow a policy of import substitution as a strategy for growth during the 1950s,1960s,and 1970s? Why was this not generally possible for small developing nations? ?(b)Why was the policy of import substitution generally a failure?

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Definitions:

Demand Equation

A mathematical representation that expresses the relationship between the quantity of a good demanded and its price, along with other factors like income and the prices of related goods.

New Equilibrium Quantity

The quantity of goods or services supplied and demanded after a change in the market has led to a new equilibrium price.

Ticket Scalping

The practice of buying tickets for an event and reselling them at a higher price, often to benefit from high demand and limited supply.

Economic Losses

Economic losses refer to the reduction in financial value experienced by individuals, businesses, or the economy as a whole due to adverse events or decisions.