Which of the Following Is Not an Argument in Favor

question 1

Multiple Choice

Which of the following is not an argument in favor of export promotion over import substitution?

• A)International competition compels domestic producers to become more efficient.
• B)Exposure to world markets provides greater opportunities to learn new technologies.
• C)Producing for export permits greater specialization and economies of scale.
• D) Outward-looking development promotes larger firms.

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Definitions:

World Price

The international market price of a good, influenced by global supply and demand.

Free International Trade

The exchange of goods and services across international borders without restrictions such as tariffs, quotas, or subsidies.

Importer

An individual or company that buys goods or services from abroad for domestic use or sale.

World Price

The international market price of a good or service, determined by global supply and demand.