Which industrialization policy used by developing countries emphasizes the comparative advantage principle as a guide to resource allocation?
A) export promotion
B) import substitution
C) international commodity agreements
D) multilateral contract

Question

Quizplus · Accepted Answer

Export promotion policy emphasizes the comparative advantage principle as a guide to resource allocation, which means that countries should focus on producing goods that they have a comparative advantage in and exporting them to other markets. This policy encourages specialization and increases economic efficiency.

Which Industrialization Policy Used by Developing Countries Emphasizes the Comparative