Question

Most newly industrialized countries (NICs) have moved away from restrictive trade practices and instituted significant free market reforms. As a result these countries have:
A. attracted both trade and foreign direct investment.
B. overcome environmental damages caused by lack of development.
C. reduced population pressures through labor outsourcing.
D. obtained significant amount of loans from World Bank.
E. taken measures to protect their cultures and traditions.

Answer 1

Answer:

A. attracted both trade and foreign direct investment.

Explanation:

Restrictive trade practices refer to every deliberate and conscious effort made by the government of a country to hinder the free flow of trade across international boarder. Trade restrictions can be in form of high tariff on import,  import quota, outright embargo, e.t.c

The reduction or elimination of barrier to free trade is trade liberalization. It is also seen as free market reform as the market forces or price systems are allowed to allocate resources.

Where a country embraces free market reform, it opens her doors to inflow of trade and foreign direct investment popularly known as FDI.