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The Imperfect Capital Market Justification for Infant Industry Promotion

Question 13

Multiple Choice

The imperfect capital market justification for infant industry promotion


A) assumes that new industries will tend to have low profits.
B) assumes that infant industries will soon mature.
C) assumes that infant industries will be in products of comparative advantage.
D) assumes that banks can allocate resources efficiently.
E) assumes that developing country will reward the donor country.

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