Export-led growth tends to
A) discourage competition in the global economy.
B) exploit domestic comparative advantages.
C) lead to unemployment among domestic workers.
D) help firms benefit from diseconomies of large-scale production.
E) lower the overall volume of imports.

Question

Quizplus · Accepted Answer

Export-led growth typically involves a focus on developing and using domestic comparative advantages, such as access to cheap labor or natural resources, to increase exports and drive economic growth. This can lead to increased employment in export industries and spillover effects on other sectors of the economy. While there may be some negative consequences, such as displacement of workers in import-competing industries, overall the strategy tends to be beneficial for promoting economic development.

Export-Led Growth Tends to