The Idea Behind the Traditional Industrial Policy of Import Substitution

question 52

Multiple Choice

The idea behind the traditional industrial policy of import substitution is:

• A) to protect infant industries until they can become price competitive in the world market.
• B) give certain industries a chance to enter a market and gain efficiencies that companies elsewhere in the world have already gained in that industry.
• C) build up home industries to compete with others in the world.
• D) All of these statements are true.

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Definitions:

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