10.4

What are the two primary state-led development models adopted in various countries?

• Monetary policy and fiscal policy

• Import-substituting industrialization and export-oriented industrialization

• Agricultural development and service-oriented industrialization

• Domestic production and international trade

What is the main focus of import-substituting industrialization (ISI)?

• Promoting international trade

• Increasing imports to stimulate the economy

• Protecting and stimulating the creation of new industries for domestic production

• Encouraging foreign investment in domestic industries

Why did many countries adopt import-substituting industrialization (ISI) in the post–World War II era?

• To reduce their reliance on state intervention in the economy

• To promote agricultural and mining industries

• To catch up with the industrial development of northern countries

• To increase their dependence on imports from developed countries

What problem did state-led development models like ISI aim to solve in terms of industrialization?

• Low demand for manufactured goods in the global market

• Lack of skilled labor in the manufacturing sector

• Insufficient funds for industrial investment

• Inefficient production of domestic goods

What measures did ISI states take to protect target industries from foreign competition?

• Encouraging foreign companies to invest in domestic industries

• Lowering the prices of domestic products to compete with foreign goods

• Providing subsidies to foreign companies for exporting goods

• Imposing high tariffs and other restrictions on imports of manufactured goods

What led to the ultimate crisis of import-substituting industrialization (ISI) in the 1980s?

• Rising interest rates and high inflation

• Threat of sovereign debt defaults and withdrawal of international credits

• Massive government debt and inefficient industries

• Balance of payments crises and hyperinflation

What were the conditions imposed by international institutions for further loans and restructuring of old ones in the 1980s?

• Privatization of public enterprises and deregulation of the domestic market

• Increase in government spending and protectionism

• Nationalization of foreign-owned industries and increase in trade barriers

• Expansion of state-owned enterprises and manipulation of exchange rates

What alternative development strategy emerged partly as a response to the failures of ISI policies?

• Neoliberalism

• Communism

• Socialism

• Protectionism

What is the main focus of neoliberal economics as a development strategy?

• Nationalization of key industries and foreign investment restrictions

• Laissez-faire economics and free market policies

• State-led development and protectionism

• Minimal government intervention and international trade barriers

What were the economic crises in Latin America, Africa, and some Asian countries viewed as a result of?

• Excessive government spending and high inflation

• Lack of foreign investment and trade barriers

• The failures of neoliberal policies

• The failures of state-led development models like ISI