All of the following would be potential problems if developing nations around th
ID: 1158808 • Letter: A
Question
All of the following would be potential problems if developing nations around the world emphasized export promotion EXCEPT
Select one:
a. current research has clearly established that there is no causal connection between exports and faster economic growth.
b. export growth may not add to GDP if it crowds out growth in output of goods for domestic consumption.
c. industrial nations may be unable to absorb the exports of many newly industrializing nations.
d. it would be much harder to emphasize exports under the WTO framework if the emphasis in exports requires some kind of subsidies.
e. export promotion by many countries may lead to economic conflicts.
Explanation / Answer
"A"
Current research has clearly established that there is no causal connection between exports and faster economic growth. There is no such result in any research. The relation between export and economic growth is very strong and we call it export-led Growth.