When a Developing Country Relies on Import Substitution,_____

question 44

Multiple Choice

When a developing country relies on import substitution,_____.

• A)it capitalizes on the gains from specialization and comparative advantage
• B)it replaces high-cost domestic goods with low-cost foreign goods
• C)domestic producers,shielded from foreign competition,usually become more efficient
• D)other countries often retaliate with their own trade restrictions
• E)it concentrates on producing only for the international market

Comprehend the process of purchasing an asset with deferred payments including interest and its impact on the balance of debt principal over time.

Understand how changes in current asset and current liability accounts impact cash flow.

Recognize the significance of present value concepts in financing transactions and equipment purchases.

Understand the components and costs that can be capitalized in the initial measurement of tangible and intangible assets.