Which of the Following Does Not Explain Why Developing Countries

question 9

Multiple Choice

Which of the following does not explain why developing countries encouraged new manufacturing industries of their own in the mid 20th century?

• A) They were cut off from traditional suppliers of manufactures during WWII.
• B) Former colonial areas had something to prove; they wanted to attain the same income levels as their former rulers.
• C) Leaders of these countries feared that their efforts to escape poverty would be doomed if they continues to specialize in primary commodity exports.
• D) There was political pressure to protect these industries.
• E) Developing countries ran out of the natural resources that traditionally made up the majority of their trade.

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Definitions:

Revenues

The total incomes that a business receives from its normal business activities, usually from the sale of goods and services to customers.

Useful Life

The expected period of time during which an asset remains useful to the owner or is capable of generating revenue.

Interest Rate

The percentage of a sum of money charged for its use, reflecting the cost of credit or the return on investment.

Rule of 70

A simple way to estimate the number of years it will take for an investment to double in size, calculated by dividing 70 by the annual rate of growth.