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) Multilateral contract

Question

Quizplus · Accepted Answer

Export promotion policies focus on identifying and developing industries in which a country has a comparative advantage in producing, and then promoting the export of those goods to international markets. This approach is based on the principle of comparative advantage, which states that countries should specialize in producing and exporting goods in which they are relatively more efficient, and import goods in which they are relatively less efficient. This policy is often used by developing countries as a way to integrate into the global economy and increase economic growth through exports.

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