3. The disappointment with import-substitution policies is in part becauseA) of the rapid and continuous growth record of South American countries.B) many countries pursuing this strategy experienced stagnation in their growth.C) this policy is inconsistent with sophisticated economic growth models.D) this policy tended to create world-class industrial competitors.E) of the financial investment lost by the U.S.

2. Import substitution policies make use ofA) tariffs that discourage goods from entering a country.B) quotas applied to goods that are shipped abroad.C) production subsidies granted to industries with comparative advantage.D) tax breaks granted to industries with comparative advantage.E) production facilities provided by industrialized countries

6. The growth successes of the high performance Asian economiesA) supports the belief that economic development requires import substitution policies.B) rejects the belief that export-oriented industrialization is likely to promote economicdevelopment.C) rejects the belief that economic development requires import substitution policies.D) suggests that free trade policies are required for successful economic development.E) enforces United States' hesitation to trade with developing countries.

When a country restricts imports of competitive products in order to allow smaller, less competitive domestic firms to grow and prosper, it is called:Question 3Answera.import substitution policy.b.tariffs.c.non-tariffs.d.none of them

Export-led growth tends toQuestion 12Answera.lead to unemployment among domestic workers.b.discourage competition in the global economy.c.exploit domestic comparative advantages.d.help firms benefit from small-scale production.

4) Suppose that a country experiences growth strongly biased toward its export, clothA) this will tend to worsen the country's terms of trade.B) this will tend to improve the country's terms of trade.C) this will tend to leave the country's terms of trade unchanged.D) this will tend to worsen the terms of trade for the country's trading partner.E) this will increase the price of cloth relative to the imported good.