Which of the Following Is Not One of the Three

question 50

Multiple Choice

Which of the following is not 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 is easier for developing nations to protect their domestic market against foreign competition than to force developed nations to lower trade barriers against their manufactured exports
• C)Foreign firms are induced to establish so-called tariff factories to overcome the tariff wall of developing nations
• D)It overcomes the smallness of the domestic market and allows a developing nation to take advantage of economies of scale

---

Definitions:

Average Total Cost

The cost per unit of output, calculated by dividing the total production cost by the quantity of output produced.

Marginal Revenue

The supplementary earnings acquired from selling an extra unit of a product or service.

Competitive Market

A market structure where multiple firms are vying for consumers' business, thereby fostering innovation and fair pricing due to competition.

Total Revenue

The full amount of capital a business garners from the sale of goods or the rendering of services for a particular timeframe.