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.

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Definitions:

Adequacy of Consideration

An evaluation of whether something of legally sufficient value has been given in exchange for a promise or action, as part of a contract.

Fair Market Value

An estimate of the market value of a property, based upon what a knowledgeable, willing, and unpressured buyer would probably pay to a knowledgeable, willing, and unpressured seller in the market.

Unilateral Contract

A type of contract in which only one party makes a promise or undertakes a performance in exchange for an act, rather than a promise, from the other party.

Consideration

A legal term referring to something of value exchanged between parties as part of a contract.