General equilibrium considerations lead to the realization that import- substituting policies have the effect of
A)generating large tariff revenues for the government.
B)creating competitive manufacturing sectors.
C)encouraging exports.
D)discouraging exports.
E)encouraging an efficient use of a country's resources.

Question

Quizplus · Accepted Answer

Import-substituting policies often lead to a focus on domestic production, which can result in less emphasis on exporting goods, thereby discouraging exports.

General Equilibrium Considerations Lead to the Realization That Import- Substituting