What is the unbalanced development strategy and how does this strategy create forward and backward linkages into the economy?
The unbalanced development strategy is a growth strategy that relies on initial government investments that
are small in size and scope, but that will trigger new demands and new supplies in the economy. Production
projects emerge to satisfy these new demands, and their outputs make other previously unfeasible projects
feasible. A forward linkage occurs when investments in one industry create opportunities for profitable
investments in other industries that use the goods produced in the first as inputs. A backwards linkage
occurs when investments in one industry create demands for inputs that induce investment in other
industries to produce those inputs.
You might also like to view...
A depreciating domestic currency is often perceived to be a sign of a(n):
A) economic expansion. B) strong government. C) weak government. D) global slowdown.
The term "fixed cost" refers to the cost a firm incurs to produce a specific fixed quantity of output
Indicate whether the statement is true or false
________ refers to reductions in a firm's costs that result from an increase in the size of an industry
A) Autarkial dominance B) External economies C) Streamlining D) Internal economies
According to the law of one price, if the price of Colombian coffee is 100 Colombian pesos per pound and the price of Brazilian coffee is 4 Brazilian reals per pound, then the exchange rate between the Colombian peso and the Brazilian real is
A) 40 pesos per real. B) 100 pesos per real. C) 25 pesos per real. D) 0.4 pesos per real.