Why is import substitution so popular as a development strategy in poor nations?
a. Domestic firms will be producing better products.
b. It promotes free trade.
c. It provides infant industries a protected market.
d. It creates a competitive advantage for domestic firms.
c
Economics
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A quota differs from a tariff in that quotas:
A. limit the volume of imports more than tariffs. B. do not generate tax revenues, unlike tariffs. C. do not increase the price of imports as much as tariffs. D. reduce consumer welfare more than do tariffs.
Economics
When judging the competitiveness of markets by the size and number of firms in that market, one is using the:
A. "judgment by antitrust" criteria. B. "judgment by structure" criteria. C. "judgment by performance" criteria. D. "judgment by merger" criteria.
Economics