Chapter 31

What strategies will enable the achievement of economic growth/economic development? (3 answers)

• Import substitution

• Redistributive fiscal policies

• Economic integration

• Export promotion

Select one of the market-based supply-side policies used to promote economic growth

• Humanitarian aid

• Trade liberalization

• Price floor

• The IMF

Foreign direct investment (FDI) is long-term investment by private multinational enterprises/corporationsin countries overseas.

• True

• False

What is the principal objective and purpose of a social enterprise?

• Ensure the stability of the international monetary system

• Price control or limit on how low a price can be charged for a product, good, commodity, or service.

• Overcome/alleviate a global or local issue such as poverty, lack of education, etc

• Concentrate on increasing exports and export revenue

Choose 2 disadvantages of export promotion

• Increased protectionism

• May increase income inequality, less economic development

• Encourage local capacity building

One of the advantages of the ISI (import substitution industrialization) is: Protecting jobs in the domestic market by preventing foreign firms from competing

• True

• False

The purpose of minimum wages is to protect workers against low pay and ensure equitable share.

• True

• False