Which of the Following Is One of the Three Main

question 7

Multiple Choice

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

• A)It may be very difficult for developing nations to set up export industries because of the competition from the more established and efficient industries in developed nations
• B)Domestic industries can grow accustomed to protection from foreign competition and have no incentive to become more efficient
• C)Developed nations often provide a high level of effective protection for their industries producing simple labor-intensive commodities in which developing nations already have or can soon acquire a comparative advantage
• D)Foreign firms are induced to establish so-called tariff factories to overcome the tariff wall of developing nations.

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Definitions:

Tender Offer

A public proposal made by a person or company to shareholders to buy shares of a corporation, typically at a premium over the market price.

Stock Acquisition

The purchase of enough of the voting stock of a corporation to allow the buyer to control the corporation. Also called takeover.

Merger

The combination of two or more companies into one, where one corporation is completely absorbed by another corporation.

Consolidation

The joining of two corporations.