One of the reasons that import substitution is popular is that
a. there was never any demand for the products in question
b. infant industries would have to compete against global rivals
c. it benefits suppliers to the favored domestic industries
d. it slows down the progression through the production chain
e. the emphasis is on comparative advantage and trade expansion
C
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What is the ECB prohibited from doing in the Eurozone?
A) raising tariffs on goods from nonmember countries B) directly financing member countries fiscal deficits C) increasing interest rates D) decreasing interest rates
An externality is
a. always a benefit to the recipient b. always a detriment to the recipient c. an activity that occurs in a business that is unknown to management d. an unintended benefit or cost imposed on third parties resulting from market activity e. an act, caused by a firm located in this country, that has an effect on a person in a foreign country