A Problem Associated with Import Substitution as an Industrial Policy

question 58

Multiple Choice

A problem associated with import substitution as an industrial policy is:

• A) it removes the incentive for industries to be efficient.
• B) industries are often chosen for political, not economic, reasons.
• C) it often stays in place long after it was expected to lapse.
• D) All of these are problems associated with import substitution policy.

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Definitions:

Organizational Cultural Lag

Organizational cultural lag is a condition in which dominant cultural patterns are inconsistent with new emerging innovations.

Cultural Patterns

The shared beliefs, norms, behaviors, and values that are consistent among members of a society or organization.

Dominant

Refers to having authority or a commanding position over others in a social or organizational hierarchy.

Cultural Lag

The phenomenon where changes in societal norms, values, and technology outpace adjustments in the cultural and legal frameworks, leading to a period of adjustment and conflict.