Between import-substitution policy and export-promotion policy, the policy that is preferred by the domestic producers and consumers. Concept Introduction: The measures taken by the government to reduce the import of goods and services by promoting local businesses to develop the goods and services indigenously is known as import-substitution policy whereas the measures taken by the government to promote the export of locally produced goods and services in the global market is known as an export-promotion policy.

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Respond to this post. Hello Professor, A rise in consumption in the economy would cause an increase in aggregate demand. Therefore, when consumers spend money on everyday goods and services, it not only helps to stimulate economic growth, but it could also present potential issues like unsustainable debt levels or inflation. I believe that it would be beneficial to consider such factors and adopt a purchasing strategy to help navigate the challenges posed by inflation or unsustainable debt levels. First, do you think our business will be affected because inflation is rising? How? Yes, I do believe that the business will be affected because of inflationary pressures. Inflation rising will affect the cost of goods, services, and labor, which could lead to higher operating expenses. The potential reduction of profit margin because of inflation could lead to a smaller percentage of revenue being retained as profit. Therefore, inflation rising will force us to raise prices for…

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Chapter 19, Problem 2.3P

To determine

Between import-substitution policy and export-promotion policy, the policy that is preferred by the domestic producers and consumers.

Concept Introduction:

The measures taken by the government to reduce the import of goods and services by promoting local businesses to develop the goods and services indigenously is known as import-substitution policy whereas the measures taken by the government to promote the export of locally produced goods and services in the global market is known as an export-promotion policy.

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Respond to this post. Hello Professor, A rise in consumption in the economy would cause an increase in aggregate demand. Therefore, when consumers spend money on everyday goods and services, it not only helps to stimulate economic growth, but it could also present potential issues like unsustainable debt levels or inflation. I believe that it would be beneficial to consider such factors and adopt a purchasing strategy to help navigate the challenges posed by inflation or unsustainable debt levels. First, do you think our business will be affected because inflation is rising? How? Yes, I do believe that the business will be affected because of inflationary pressures. Inflation rising will affect the cost of goods, services, and labor, which could lead to higher operating expenses. The potential reduction of profit margin because of inflation could lead to a smaller percentage of revenue being retained as profit. Therefore, inflation rising will force us to raise prices for…

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