Which of the following is one of the three main advantages of an import-substitution industrialization strategy?
A)The market for the industrial product already exists,as evidenced by imports of the commodity,so that risks are reduced in setting up an industry to replace imports
B)It overcomes the smallness of the domestic market and allows a developing nation to take advantage of economies of scale
C)Production of manufactured goods for export requires and stimulates efficiency throughout the economy
D)The expansion of manufactured exports is not limited by the growth of the domestic market

Question

Quizplus · Accepted Answer

One of the main advantages of an import-substitution industrialization strategy is that the market for the industrial product already exists, as evidenced by imports of the commodity, so that risks are reduced in setting up an industry to replace imports. This can help to ensure a market for the domestically-produced goods, reducing the risk of overproduction and allowing for more efficient use of resources.

Which of the Following Is One of the Three Main