Import Substitution Policies Make Use of

question 18

Multiple Choice

Import substitution policies make use of

• A) tariffs that discourage goods from entering a country.
• B) quotas applied to goods that are shipped abroad.
• C) production subsidies granted to industries with comparative advantage.
• D) tax breaks granted to industries with comparative advantage.
• E) production facilities provided by industrialized countries.

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Definitions:

Bond Interest

The periodic payment made to bondholders, typically a fixed rate of interest paid on the bond's face value.

Tax Purposes

The consideration or treatment of transactions, events, or financial situations in relation to calculating tax liabilities.

Dividends

Payments made by a corporation to its shareholder members from the company's earnings.

Earnings

Income generated from a company's business activities over a certain period, often reported as net income.