4.10 - Economic Growth and Economic Development Strategies

Question 1

Import substitution

Answer 1

Import substitution is a development strategy where an ELDC country switches away from imported manufactured goods and develops an industrial base to produce these products in its own country.

Use protectionism

Question 2

Strengths of import substitution

Answer 2

• eldc can diversify
• can finally start to accesss growth markets
• trade barrier protects indusries

Question 3

weakness of import substitution

Answer 3

• protectionism can leadd to retaliation
• tariffs and quotes increase import prices for consumers
• relies on eldc having factors of production
• trade barrier costs

Question 4

export promotion

Answer 4

Export promotion is an economic development strategy in which a country concentrates its resources on producing manufactured goods primarily for export.

Question 5

strengths of export promotion

Answer 5

• funds for new investment
• targets growing markets
• diversification
• high economic growth
• brings in forex

Question 6

weaknesses of export promotion

Answer 6

• may get fucked by MEDC using protectionism
• saturated
• unsustainable
• income inequality