The Relationship Between Import Substitution Policies and Export-Led Development Policies

Multiple Choice

The relationship between import substitution policies and export-led development policies is best characterized by which of the following?

A) Import-substitution policies are more likely to lead to production of mature products, whereas export-led development policies result in production of growth products.
B) The two are hard to distinguish because production under import substitution may eventually be exported.
C) Production under import substitution policies, as opposed to export-led development policies, is more likely to be located in urban areas.
D) Production under import substitution policies, as opposed to export-led development policies, is likely to be more labor-intensive.