AE 4 - Economic Development

F1

Name: _____________ Instructor:

Date: ____________________

True or False.
_True____1. Outward-looking development policies encourage exports, a welcome to multinational
corporations, and open communications.

_True____2. Inward-looking development policies stress economic self-reliance on the part of

developing countries including domestic development of technology, the imposition of barriers to
imports, and the discouragement of private foreign investment.

_False____3. Import Substitution is a deliberate effort to replace consumer imports by promoting the
emergence and expansion of foreign industries.

_False____4. Export Promotion are governmental efforts to expand the volume of a country’s exports
through decreasing export incentives.

_True____5. Developing country population growth rates are now at or near the replacement level, so
little expansion can be expected from this source.

_False____6. The synthetic share of world market export earnings has generally fallen over time, while
the share of natural products has risen.

_True____7. Poor climate and bad soil are factors working against the rapid expansion of primary-
product export earnings.

_False____8. Policies that are mainly focused on agricultural self-sufficiency are considered as primary
outward-looking policies.

_False____9. Community agreements attempt to guarantee participating nations a relatively fixed share
of world export earnings and a more stable world price for their commodity.

_True____10. Not all commodities can be buffer stocked, such as bananas because they can easily ripen
unlike tea, oil and cotton