One of the Drawbacks of Implementing an Import-Substitution Policy Is

question 49

Multiple Choice

One of the drawbacks of implementing an import-substitution policy is that:

• A)it makes other countries impose trade restrictions as a retaliatory measure.
• B)it makes the economy vulnerable to global economic fluctuations.
• C)it leads to brain drain,by which educated and knowledgeable resources are lost.
• D)it increases the dependence on foreign capital goods for economic growth.
• E)it increases the budget deficit of the domestic country.

---

Definitions:

Budgeted Factory Overhead

The expected or estimated overhead costs for a factory within a certain period, typically used for planning and control purposes.

Budgeted Fixed Overhead

The predetermined estimate of the total fixed costs required to produce a specific amount of output over a fixed period.

Budgeted Variable Overhead

Estimated costs that vary with production volume, such as utilities or raw materials, not directly tied to labor or capital.