4.10 Economic Growth and Development Strategies

What is the main objective of import substitution strategy?

• To reduce domestic production

• To produce more domestically

• To increase imports

• To promote international trade

Which of the following is a disadvantage of import substitution strategy?

• It leads to inflation

• It encourages R&D investment

• It protects jobs in the long run

• It promotes competition

What is the main focus of export promotion strategy?

• Increasing imports

• Liberalising trade

• Promoting domestic industries

• Reducing FDI flows

What is a concern related to export promotion strategy?

• It promotes technology use

• It reduces demand for skilled workers

• It encourages domestic production

• It leads to income equality

What is the main goal of trade liberalisation?

• To promote protectionism

• To encourage FDI flows

• To increase import tariffs

• To reduce government intervention

What is a type of development aid that aims to raise the level of technology in a developing country?

• Tied aid

• Technical Assistance Aid

• Long term loans

• Project aid

What is a concern related to aid weariness?

• It promotes economic development

• It leads to increased aid flows

• It reduces flows of aid

• It encourages innovation

What is the main drawback to growth and development in developing countries?

• Lack of trade liberalisation

• Excessive government intervention

• High level of debt repayments

• Low level of foreign aid

What is the main objective of the Heavily Indebted Poor Countries (HIPC) Initiative?

• To improve access to banking in developing countries

• To increase indebtedness of developing countries

• To relieve the indebtedness of developing countries

• To reduce corruption in developing countries

Should developed countries help poor, third world nations without expecting debt repayment?

• Yes, it is their moral responsibility

• No, it will lead to aid weariness

• No, it will promote dependency on aid

• Yes, only if it benefits their political interests