The experience of sub-Saharan Africa,as compared to that of "Other Asia" (not including the HPAEs)supports the argument that
A) high rates of protection tend to harm economic growth.
B) the poorer is the country the easier it is for it to "catch up" economically.
C) low rates of protection tend to promote economic growth.
D) free trade always best stimulates a developing country's economy.
E) neither trade liberalization nor import substitution is a foolproof strategy for economic development.

Question

Quizplus · Accepted Answer

Trade liberalization and import substitution are both strategies for economic development, but neither is foolproof. Trade liberalization can lead to increased economic growth, but it can also lead to increased inequality and environmental degradation. Import substitution can lead to increased domestic production, but it can also lead to higher prices and lower quality goods.

The Experience of Sub-Saharan Africa,as Compared to That of "Other