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

question 48

Multiple Choice

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

• 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)The expansion of manufactured exports is not limited by the growth of the domestic market.
• C)Domestic industries can grow accustomed to protection from foreign competition and have no incentive to become more efficient.
• D)It allows developing nations to take advantage of economies of scale.

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Definitions:

AC

Average Cost; the total cost of production divided by the number of units produced, indicating the cost per unit.

Producer Surplus

The difference between the amount producers are willing to supply goods for and the actual amount received by them when sold.

Perfectly Competitive Industry

An economic theory describing a market structure where firms sell identical products, no single buyer or seller can influence the market price, and information is freely available.

AC

AC, or Average Cost, is the cost per unit of output, calculated by dividing the total cost by the quantity of output produced.