The experience of Chile's foreign sector in the last two decades of the 20th century supports the proposition that economic growth is supported by
A) import substitution.
B) industrialization policies.
C) trade liberalization policies.
D) intra-industry trading.
E) trade embargoes.

Question

Quizplus · Accepted Answer

Chile's foreign sector experienced significant growth in the last two decades of the 20th century due to the implementation of trade liberalization policies. These policies opened up the economy to international competition, attracting foreign investment and promoting exports, which in turn supported economic growth. Import substitution and industrialization policies tend to be inward-looking and can limit a country's exposure to international markets. Intra-industry trading is beneficial for countries that are already integrated into global value chains, but it is not a necessary condition for economic growth. Trade embargoes, on the other hand, are detrimental to trade and economic growth.

The Experience of Chile's Foreign Sector in the Last Two