Which of the Following Is Not One of the Three

question 24

Multiple Choice

Which of the following is not one of the three main disadvantages of an import-substitution industrialization strategy?

• A)Domestic industries can grow accustomed to protection from foreign competition and have no incentive to become more efficient
• B)Import substitution can lead to inefficient industries because of the smallness of the domestic market in many developing nations
• C)After the simpler manufactured imports are replaced by domestic production,import substitution becomes more and more difficult and costly as more capital-intensive and technological advanced imports have to be replaced by domestic production
• D)Unhappy domestic producers who will not like the tariff barriers in their respective industries.

---

Definitions:

Mark-Up

The amount added to the cost price of goods to cover overhead and profit in setting the selling price.

Cost Method

An accounting approach where investments are recorded at their acquisition cost, without reflecting the investor's share of the investee's profits or losses until dividends are received.

Effective Tax Rate

reflects the percentage of income paid as tax, taking into consideration both federal and state taxes, and deductions.

Consolidated Retained Earnings

The accumulated net income of a company after dividends are paid, combined from all its divisions or subsidiaries.