Export-led growth strategies tend to emphasize ?
Correct answer: B. resource allocation based on the principle of comparative advantage
- A. resource allocation based on the principle of absolute advantage
- B. resource allocation based on the principle of comparative advantage
- C. trade protection for import-competing firms
- D. trade protection for exporting-competing firms
Explanation
Export-led growth encourages production in industries where a country has a comparative advantage, meaning a lower opportunity cost relative to other countries. Protection of import-competing industries is associated with import substitution instead.
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