The consensus today is that import-substitution protectionist industrial policy has not served the developing countries' growth ambitions well
This fact proves that policies relying on export-driven growth are the "winning ticket" for these countries.
Although there are many who draw precisely this lesson from the " East Asian Miracle" of the past half-century, such a conclusion does not necessarily follow logically. Although the four HPAEs succeeded in their economic as well as in their export sector growth, they differed among themselves considerably in the degree and manner with which they abjured protectionist policies. In any case, export-promotion policies may distort relative prices to the same extent as import protectionist policies, and hence may lead to the same waste and misallocation of national resources.
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Total product begins to decline when diminishing marginal returns are first experienced
a. True b. False
Which of the following is a function of money?
A) medium of exchange B) provides protection from inflation C) it is a flow variable D) all of the above E) none of the above
Refer to the table. Per capita GDP was about:
A. $105 in year 3 in Alta.
B. $303 in year 3 in Zorn.
C. $200 in year 1 in Zorn.
D. $5 in year 2 in Alta.
Which of the following factors does not help explain incomplete specialization by countries that trade in accordance with comparative advantage?
a. There may be high transportation costs for perishable products or human services. b. The economies of trading partners may be of vastly different sizes. c. Opportunity costs of production may not be constant, but may vary with the volume of production. d. Governments may impose all kinds of barriers to free international trade, such as tariffs and quotas. e. The cost of making trade deals may have become extremely low because of the existence of the World Trade Organization.