When a Developing Country Relies on Import Substitution

question 83

Multiple Choice

When a developing country relies on import substitution,

• A)it sacrifices the gains from specialization and comparative advantage
• B)replaces low-cost foreign goods with high-cost domestic goods
• C)domestic producers, shielded from foreign competition, usually fail to become efficient
• D)other countries often retaliate with their own trade restrictions
• E)All of the answers are correct

---

Definitions:

Group Salvation

A religious or spiritual concept that emphasizes salvation or redemption as a collective experience rather than solely an individual achievement.

Slave Culture

The social, cultural, and family structures, as well as traditions and linguistic dialects, developed among enslaved Africans and their descendants in the Americas.

African Past

The historical experiences, civilizations, and cultures of the African continent before the modern era.

Southern Plantation

A large farm or estate in the Southern United States, historically reliant on the labor of enslaved Africans and African Americans to grow cash crops such as cotton, tobacco, and sugar.