What type of economic policy did Mexico follow from the end of World War II until the 1980s? Describe the three-stage strategy that supporters of this policy emphasized. What was the outcome of these policies for Mexico's manufacturing sector?
What will be an ideal response?
Import substitution industrialization (ISI), which emphasized self-sufficiency over trade and the substitution of domestic manufacturing industries for imports. First, the nation begins producing simple consumer nondurable products, then it shifts to more complex consumer goods and intermediate industrial goods. Finally, the nation is able to produce more complex industrial goods. Protection from competition meant that Mexico's manufacturing sector wasn't competitive.
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Central banks can increase the money supply by:
a. Selling foreign exchange. b. Raising margin requirements. c. Making discount loans. d. All of the above. e. None of the above.
Refer to the above figure. Profits for this firm are equal to zero
A. only for all points less than B. B. for points between B and C. C. for all points less than B and greater than C. D. only at points B and C.