Studies by the World Bank and others have underscored the successes of countries that have adopted _____
A) import substitution.
B) export promotion.
C) trade liberalization policies.
D) brain drain.
E) trade restrictions.

Question

Quizplus · Accepted Answer

Studies by the World Bank and others have shown that trade liberalization policies have been successful for countries that have adopted them. These policies involve reducing or eliminating trade barriers, allowing for more international competition, and promoting free trade. Import substitution (A) involves policies that aim to replace foreign imports with domestically produced goods, which can limit a country's access to international markets. Export promotion (B) focuses on increasing a country's exports, but can also limit access to international markets if trade barriers are not reduced. Brain drain (D) refers to the emigration of skilled workers from a country, which can have negative economic effects. Trade restrictions (E) involve increasing trade barriers and limiting international competition, which can limit a country's access to international markets and hinder economic growth.

Studies by the World Bank and Others Have Underscored the Successes