What were some of the reasons for the decline in the import-substituting industrialization strategy in favor of a strategy that promotes open trade? O High rates of effective protection allowed industries to survive when their cost of production was three to four times higher than the price of the imports they replaced. O Protectionist policies had a negative effect on incentives, which led to rent-seeking or corruption in some developing countries. Countries pursuing import substitution were not catching up with advanced countries. O All of the above.

Q: Which of the following is NOT a trade cost? O the hassle of working across language barriers dealing…

A: Trade costs refer to various expenses and obstacles that firms encounter when engaging in…

Q: What are the gains from trade, and explain why countires might still decide to trade even if no…

A: The gains from trade are the gains from trading instead of producing i.e. the advantages that accrue…

Q: Please correct and incorrect answer explanation Countries that restrict foreign trade are likely…

A: Foreign trade also known as international trade refers to the exchange of goods and services between…

Q: Who does protectionism protect? From what does it protect them?

A: International trade brings out a positive impact on the economies as they help in growing the…

Q: Many U.S. firms import products or parts from other countries indstead of producing them…

A: Countries generally do trade with other nations when they have a lack of resources, to fulfill and…

Q: The young expert Hand written solution is not allowed.

A: When the government imposes no tariff (t=0), we can find the equilibrium output and profit for each…