Which of the following is not one of the three main advantages of an import-substitution industrialization strategy?
A)The market for the industrial product already exists,as evidenced by imports of the commodity,so that risks are reduced in setting up an industry to replace imports
B)It is easier for developing nations to protect their domestic market against foreign competition than to force developed nations to lower trade barriers against their manufactured exports
C)Foreign firms are induced to establish so-called tariff factories to overcome the tariff wall of developing nations
D)It overcomes the smallness of the domestic market and allows a developing nation to take advantage of economies of scale

Question

Quizplus · Accepted Answer

The main advantages of an import-substitution industrialization strategy include reducing risks by targeting existing markets, protecting domestic industries, and attracting foreign firms to establish local production. However, it does not inherently overcome the issue of small domestic markets to achieve economies of scale, which is often a challenge for developing nations adopting this strategy.

Which of the Following Is Not One of the Three