Explain import substitution
What will be an ideal response?
Import substitution is an industrial trade strategy that favors developing local industries that can manufacture goods to replace imports.
You might also like to view...
The population of a small town is 5,000. There are 4,000 people in the labor force, and 3,000 people are employed. The unemployment rate equals
A) 25 percent. B) 60 percent. C) 75 percent. D) an undetermined amount given the lack of information.
The relationship between money and spending is
A) very reliable. B) very unreliable. C) not important. D) None of the above.
Two goods are substitutes when
A) an increase in the price of one reduces the demand for the other. B) an increase in the price of one raises the demand for the other. C) the two goods are used together. D) the two goods have the same price.
If a firm sells its product in a monopolistic market, even though the firm operates in a perfectly competitive labor market, the firm will employ workers up to the point where
A) TR = TC. B) the MRP = the wage rate. C) the MRP = the marginal physical product of labor. D) the MRP = the output price.