Which of the following is not one of the three main disadvantages of an import-substitution industrialization strategy?
A)Domestic industries can grow accustomed to protection from foreign competition and have no incentive to become more efficient
B)Import substitution can lead to inefficient industries because of the smallness of the domestic market in many developing nations
C)After the simpler manufactured imports are replaced by domestic production,import substitution becomes more and more difficult and costly as more capital-intensive and technological advanced imports have to be replaced by domestic production
D)Unhappy domestic producers who will not like the tariff barriers in their respective industries.

Question

Quizplus · Accepted Answer

Unhappy domestic producers who will not like the tariff barriers in their respective industries is not considered one of the three main disadvantages of an import-substitution industrialization strategy. The three main disadvantages are A) domestic industries becoming accustomed to protection from foreign competition and not becoming more efficient, B) potential inefficiencies due to the smallness of the domestic market in many developing nations, and C) the increasing difficulty and cost of replacing more capital-intensive and technologically advanced imports with domestic production.

Which of the Following Is Not One of the Three