The Disappointment with Import-Substitution Policies Is in Part Because
The disappointment with import-substitution policies is in part because
A) 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.
It is argued that import substitution is a misguided trade policy if the intent is to promote long-term economic growth. Explain the reasons underlying this argument.
Growth rates in Brazil and other Latin American countries have actually been slower since the trade liberalization of the late 1980s than they were during import-substituting industrialization
A) proves that export promoting trade policy leads to relatively rapid economic growth.
B) proves that a free-trade orientation of trade policy results in rapid economic growth.
C) proves that exports help growth, whereas imports impede growth.
D) proves that trade policy is the most important policy area for promotion of economic development.
E) does not prove that trade liberalization always leads to rapid economic growth.
China's recent experience supports the proposition that
A) "economic miracles" are solely to be expected in small countries.
B) central planning and socialism can promote sustained economic growth.
C) a lessening of income disparities is a prerequisite for economic growth.
D) growth in a large country cannot be affected by its foreign sector.
E) policy changes can dramatically prompt export oriented growth.