Interventionist Strategies for Economic Development

The video discusses interventionist strategies in developing economies, focusing on both macro and micro levels. It covers macro strategies like import substitution and trade protection, and micro strategies such as regulation and nationalization. The video emphasizes the importance of trade aspects, protectionist policies like tariffs, quotas, and subsidies, and the role of managed exchange rate systems. It concludes with a look at microeconomic strategies, including regulation and education programs, to promote economic development.

What is the primary focus of interventionist strategies in developing economies?

• Focusing solely on microeconomic policies

• Maximizing the role of the state and government

• Minimizing the role of the state

• Maximizing the role of supply and demand

Which strategy involves reducing a country's reliance on foreign imports?

• Export-led growth

• Import substitution

• Currency devaluation

• Trade liberalization

What is the main goal of import substitution?

• To increase foreign investments

• To encourage domestic production and consumption

• To reduce government intervention

• To promote international trade

How do tariffs function as a protectionist policy?

• By increasing domestic production costs

• By providing financial aid to exporters

• By imposing a tax on imported goods

• By subsidizing domestic producers

What is a potential downside of protectionist policies?

• They encourage innovation and invention

• They permanently boost domestic industries

• They eliminate international competition

• They may lead to higher consumer prices

What is the purpose of a managed exchange rate system?

• To allow currency value to fluctuate freely

• To maintain currency value within a specific band

• To peg the currency to a single foreign currency

• To eliminate the need for foreign currency reserves

Which microeconomic strategy involves transferring industries from private to state ownership?

• Nationalization

• Regulation

• Privatization

• Subsidization

What is the role of buffer stock schemes in agriculture?

• To reduce government intervention

• To stabilize farmers' incomes

• To promote international trade

• To increase agricultural exports

How does infrastructure development contribute to economic growth?

• By increasing productive capacity

• By limiting domestic consumption

• By decreasing government spending

• By reducing foreign investments

What is the aim of education and training programs in microeconomic strategies?

• To generate skills and expertise

• To reduce government intervention

• To increase foreign imports

• To promote international trade