Policies that require countries to privatize state-run firms, end subsidies, reduce tariff barriers, shrink the size of the state, and welcome foreign investment are sometimes known as:
A)import substitution programs.
B)structural adjustment programs.
C)service-sector growth programs.
D)neomercantilism.
E)export industrialization programs.

Question

Quizplus · Accepted Answer

These policies are commonly referred to as structural adjustment programs (SAPs), which are often imposed by international financial institutions like the World Bank and the International Monetary Fund on countries facing economic crises or seeking loans. The aim is to promote economic liberalization and market-oriented reforms in order to stimulate growth and increase competitiveness. Import substitution programs, export industrialization programs, and neomercantilism are different approaches to economic development. Service-sector growth programs are focused on developing industries such as technology, finance, and healthcare, rather than traditional manufacturing or agriculture.

Policies That Require Countries to Privatize State-Run Firms, End Subsidies