Many Developing Countries Have a Potential Comparative Advantage in Manufacturing,but

question 84

Multiple Choice

Many developing countries have a potential comparative advantage in manufacturing,but new manufacturing industries cannot initially compete with well-established industries in developed countries,according to

• A)economic development argument.
• B)comparative advantage theory.
• C)national security argument.
• D)infant industry argument.
• E)mixed economy theory.

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Definitions:

Business Investment

Expenditure made by businesses to purchase capital goods or services, aimed at furthering company growth and generating revenue.

Government Borrowing

The process by which a government raises funds to finance its expenditure that exceeds revenue, typically through issuing debt securities.

Budget Field

A category within a budget, specifying an area of financial activity, such as revenues, expenses, or investments.

Interest Rates

The cost of borrowing money or the return on invested funds, typically expressed as a percentage.