Which of the Following Is One of the Three Main

question 17

Multiple Choice

Which of the following is one of the three main advantages of an import-substitution industrialization strategy?

• A)The market for the industrial product already exists,as evidenced by imports of the commodity,so that risks are reduced in setting up an industry to replace imports
• B)It overcomes the smallness of the domestic market and allows a developing nation to take advantage of economies of scale
• C)Production of manufactured goods for export requires and stimulates efficiency throughout the economy
• D)The expansion of manufactured exports is not limited by the growth of the domestic market

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Definitions:

Equipment Account

A ledger account that records transactions related to the purchase, maintenance, and sale of equipment.

Consolidation

The process of combining the financial statements of a parent company and its subsidiaries into one comprehensive financial statement.

Goodwill

A non-physical asset that occurs when a business purchases another business at a cost exceeding the fair market value of its identifiable net assets.

Business Combination

A transaction or other event in which an acquirer obtains control of one or more businesses, which can be achieved through acquisitions, mergers, or consolidations.