Which of the Following Is One of the Advantages of Export-Oriented

question 52

Multiple Choice

Which of the following is one of the advantages of export-oriented industrialization?

• A)It overcomes the smallness of the domestic market and allows a developing nation to take advantage of economies of scale
• B)The market for the industrial product exists domestically,as evidenced by imports of the commodity,so that risks are reduced in setting up an industry to replace imports
• C)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
• D)Foreign firms are induced to establish so-called tariff factories to overcome the tariff wall of developing nations

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Definitions:

Purely Competitive Market

A market structure characterized by many buyers and sellers, homogeneous products, and no barriers to entry or exit, leading to price taking behavior.

Wage Rate

The amount of money paid to a worker per unit of time, which can be expressed as an hourly, daily, or piece rate.

Product Price

The amount of money required to purchase a good or service, often influenced by a variety of factors including production costs, demand, and market competition.

Marginal Revenue Product

The extra income created by the use of an additional unit of a production input.