MC Qu. 24 Why would a large country be... en is question Why would a large country be better off favoring import-substitution industries instead of export industries Multiple Choice Increased production in import-substitution industries results in a decrease in the demand for the imported product which results in a decrease in the price of the country pays for the imported product, but increased production in expert industries results in an increase in the supply of the exported product which decreases the price the country can charge for the exported product Increased production in import substitution industries results in an increase in supply of the imported product which resin higher price for the imported product and increased imports results in increased exports Net product, but increased production in portid results in an increase in the supply of the exported product which decreases the price the country can ge for the exported product Increased production in impon-substitution industries results in an increase in supply of the imported product which results a higher price for the imported product, and increased imports results in increased expor Increased production in import substitution industries increases the country's exports which allows an improvement in the country's terms of trade Increased production in import substitution industries takes factors of production owey from export industries which effectively allows only the strongest industries to survive