Trade Policies For the Developing Nations
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- Trade Policies For the Developing Nationseconomics-mcqs › trade-policies-for-the-developing-nations
- Published
- 27 May 2019
- Last updated
- 28 May 2026
Which principle is primarily emphasized in export-driven growth strategies when allocating resources?
Multiple choice question for Trade Policies For the Developing Nations. Select an option, then review the explanation below.
Explanation
Export-led growth strategies focus on directing resources toward sectors where a country has a comparative advantage, allowing it to specialize and trade efficiently. Unlike absolute advantage, comparative advantage considers opportunity costs, making it a more effective basis for resource allocation in trade. Protectionist measures typically target import-competing industries, not export sectors.
More Trade Policies For the Developing Nations MCQs
Practice related questions from the same subject.
- 1.If firms form a cartel and coordinate their production, what is the optimal total output for the cartel, the corresponding market price, and the resulting total profit?
- 2.Compared to wealthy developed countries, do less developed nations generally apply __________ tariffs on imported goods?
- 3.What has been a notable reaction to China's membership in the World Trade Organization?
- 4.Which concept explains how nations advance technologically by emulating the development paths of more advanced countries?
- 5.Why might developing nations that focus their production on agricultural goods or raw materials experience a long-term decline in their terms of trade on the global market?