Question

Blank #1: Outward-oriented or inward-oriented?

1. International trade and development Аа Aа In January 2007, the Pakistani government provided research and development support and loans to local textile companies that compete in international markets This is an example of an development strategy, the objective of which is What are common criticisms of this kind of policy? Check all that apply. If the economy specializes in producing primary products, it will be harmed over time by deteriorating terms of trade It may cause industries to develop unevenly, making the country more susceptible to becoming a dual economy It reduces domestic saving.

Blank #2: Export substitution or import substitution?

Check all that apply?

Answer 1

Question 1:

This is an example of inward development strategy, the objective of which is import substitution.

Explanation: In this type of strategy a country focuses more on its own production capacity and it wants to reduce imports.

The criticisms include the option 1 and 2

Question 2: Such policies deteriorate terms of trade over time and they result in uneven trade development.