Define import substitution. Evaluate the success of import substitution strategies in developing countries
What will be an ideal response?
Import substitution is an industrial strategy that favors developing local industries that can manufacture goods to replace imports. Most economists would argue that import substitution has not been successful. Import substitution policies tend to create inefficiency. Industries that are inefficient are protected from foreign competition. Import substitution policies often encourage capital-intensive production techniques and therefore create relatively few jobs while encouraging the use of expensive domestic products.
You might also like to view...
It's not unusual for strangers driving through a small town to find a gas station more quickly than people driving through a major city center
According to the economic way of thinking, gas stations in city centers appear few and far between because A) big cities are just plain confusing to out-of-towners. B) the real estate space available for gas stations has more valuable alternative uses. C) the opportunity cost of placing additional gas stations in city centers is too low. D) the owner of gas stations would rather have people drive further distances and thereby use more gasoline.
The XYZ Company has estimated expected cash flows for 1996 to be as follows:
Probability Cash flow .10 $120,000 .15 140,000 .50 150,000 .15 180,000 .10 210,000 Calculate: a. expected value b. standard deviation c. coefficient of variation d. the probability that the cash flow will be less than $100,000