Which industrialization policy used by developing countries places emphasis on the comparative advantage principle as a guide to resource allocation?
A) export promotion
B) import substitution
C) international commodity agreements
D) Infant Industry promotion
E) intra-industry trade practice

Question

Quizplus · Accepted Answer

Export promotion policies encourage developing countries to focus on producing and exporting goods in which they have a comparative advantage. This means that they should specialize in producing goods that they can produce relatively more efficiently than other countries, and trade with other countries to obtain goods that they cannot produce as efficiently. By focusing on their strengths and trading with other countries, developing countries can increase their economic growth and improve their standards of living.

Which Industrialization Policy Used by Developing Countries Places Emphasis on the Comparative