Question 1

Bangladesh has had success with:

Accepted Answer

Bangladesh has had success with clustering the textile industry. The textile industry is a significant contributor to the country's economy, accounting for 84% of total exports in 2019. Through clustering, the industry has been able to benefit from economies of scale, access to specialized suppliers and services, and reduced costs of transportation and logistics. This has helped to boost production efficiency and competitiveness, leading to increased exports and growth in the industry.

Question 2

Recently,many Asian countries have:

Accepted Answer

Many Asian countries, such as China and South Korea, have adopted export-led growth policies in the recent decades. This means they have focused on producing goods and services for export markets, rather than relying on imports. This strategy has been successful in driving economic growth and development in these countries. Import substitution policies, on the other hand, involve promoting domestic production by substituting imports with domestically-produced goods. However, this strategy has fallen out of favor in many countries due to its high cost and limited effectiveness.

Question 3

In reference to industrial policy,networks of interdependent firms,universities,and businesses that focus on the production of a specific type of good are called:

Accepted Answer

Networks of interdependent firms, universities, and businesses that focus on the production of a specific type of good are referred to as clusters. Clusters are formed when firms within an industry conduct activities in proximity to one another, promoting innovation and efficiency through collaboration and competition. This concept is central to the idea of industrial policy, which aims to promote economic growth by fostering clusters of related industries. Bundles, vertical industries, and integrated industries do not accurately describe this type of network.

Question 4

If a government pursues the industrial policy of import substitution,it is:

Accepted Answer

The industrial policy of import substitution aims to protect domestic industries by replacing imported goods with domestically produced goods. This is done through the use of tariffs, quotas, and other trade barriers to give domestic industries time to become efficient and competitive on the world market. Once the domestic industries are strong enough, the trade barriers are lifted, and the domestic industries can compete with foreign companies.

Question 5

A country that has had success with export-led growth policy is:

Accepted Answer

South Korea is widely regarded as one of the most successful cases of export-led growth policy. The country has transformed from a primarily agrarian economy into a technological and industrial powerhouse, thanks to government policies that encouraged exports and foreign investment. Through a combination of trade agreements, investments in education and infrastructure, and strategic support for key industries, South Korea has achieved sustained economic growth and become a major player in the global economy.

Question 6

An example of an industrial policy would be:

Accepted Answer

The answer of An example of an industrial policy would...

Question 7

The idea behind clustering is that each part of a network is ___________ productive operating in isolation,so if governments can push each element of the cluster in unison,they should realize ___________ in productivity.

Accepted Answer

The answer of The idea behind clustering is that each...

Question 8

The "Asian miracle" refers to:

Accepted Answer

The "Asian miracle" refers to the economic success and rapid growth of countries like Japan, South Korea, and Taiwan through export-led growth policies that emphasize production for export markets. These countries experienced high levels of economic growth in the second half of the 20th century, transforming themselves from largely agricultural to industrial and technological powerhouses.

Question 9

Successful export-led growth policy entails:

Accepted Answer

The answer of Successful export-led growth policy entails:
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Question 10

South Korea has:

Accepted Answer

South Korea has indeed had success with an export-led growth policy, choosing to encourage exports instead of supporting import substitution. They have also selected certain companies, like Samsung, to invest in and support, which is consistent with choosing "winners" to invest in. Therefore, all of the statements are true.

Question 11

The traditional industrial policy of import substitution:

Accepted Answer

The answer of The traditional industrial policy of import substitution:
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Question 12

In terms of industrial policy,clusters refers to:

Accepted Answer

Clusters refer to networks of interdependent firms, universities, and businesses that focus on the production of a specific type of good. These clusters aim to increase productivity and competitiveness through collaboration and knowledge sharing. This can lead to innovation, cost reductions, and increased efficiency within the cluster. Clusters can also attract new investments and talent to the region where they are located.

Question 13

Realizing the problems with import substitution,some Asian countries have:

Accepted Answer

The best choice is A, as many Asian countries have shifted their focus towards promoting export-led growth as opposed to import substitution. This has been a more successful strategy for economic development in the long term. Options B, C, and D are not necessarily effective or relevant solutions to the problems associated with import substitution.

Question 14

When one country can produce a good more efficiently than another country:

Accepted Answer

Comparative advantage suggests that both countries can benefit from specializing in the good in which they have a relative advantage and trading with each other. This allows them to take advantage of their differing opportunity costs, resulting in a more efficient allocation of resources and mutual gains from trade. Therefore, both countries can specialize in the industry in which they have a comparative advantage and experience mutual gains. Options A and B are incorrect as they suggest that only one country will benefit from trade, overlooking the potential gains from trade for both countries involved. Option D is incorrect as it contradicts the concept of comparative advantage, which is widely accepted by economists.

Question 15

The idea behind the traditional industrial policy of import substitution is:

Accepted Answer

Import substitution aims to protect new industries until they can become competitive in the global market while also improving existing industries to compete with others in the world. The policy also provides a chance for new industries to gain efficiency and build up home industries to compete with others in the world. Therefore, all the statements are true.

Question 16

Export-led growth policy involves:

Accepted Answer

Export-led growth policy involves investing heavily in an industry through tax breaks and export subsidies with the aim of selling goods around the world. This strategy focuses on promoting and developing industries that can compete in foreign markets and generate foreign exchange earnings for the country, thereby stimulating economic growth.

Question 17

Something that would not be considered a tool in pursuit of industrial policy would be:

Accepted Answer

Incentives for foreign portfolio investment are not considered a tool in pursuit of industrial policy because they do not directly promote the growth and development of domestic industries. Instead, they focus on attracting foreign capital to invest in financial markets. Industrial policy typically involves measures such as investment in research and development, infrastructure, and incentives for foreign direct investment that promote the development of a country's domestic industries.

Question 18

Japan,Singapore,and Taiwan have all:

Accepted Answer

Japan, Singapore, and Taiwan have all had success with export-led growth policies. They have focused on developing their international trade relationships, emphasizing high-tech exports, and investing in research and development. These policies have allowed them to become major players in the global economy.

Question 19

An example of a country that has had success with clustering is:

Accepted Answer

The answer of An example of a country that has...

Question 20

A problem associated with import substitution as an industrial policy is:

Accepted Answer

All of these are problems associated with import substitution policy. Import substitution policies often create inefficiencies in industries since they eliminate the need for competition. Industries are often chosen for political reasons rather than economic ones, which can lead to unprofitable investments. Lastly, import substitution policies often continue long after they were intended to end, hindering economic growth.

Quiz 35: Development Economics