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, and 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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If demand is __________ and price is __________, total revenue will _________.
A. inelastic; raised; increase B. inelastic; lowered; decrease C. elastic; raised; decrease D. All of these options are true
A business owned by two or more joint owners, or partners, who share the responsibilities and the profits of the firm and are individually liable for all the debts is a(n)
A. proprietorship. B. partnership. C. entrepreneur. D. corporation.
Use the following table with data for a private open economy (no government) to answer the next question.All figures are in billions of dollars. Real GDPC + INet Exports$400$420$20450460205005002055054020600580206506202070066020If the investment in this economy is independent of income GDP, then a $10 increase in its net exports would increase its equilibrium real GDP by
A. $25. B. $200. C. $100. D. $50.
The Fed's goal of interest rate stability
A) was formally abandoned in 1998. B) is motivated by political pressure as well as by a desire for a stable saving and investment environment. C) is undermined by actions the Fed takes to further its goal of stability in financial markets and institutions. D) is undermined by actions the Fed takes to further its goal of price stability.