Import substitution policies

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Reference no: EM132137758

1. Import Substitution policies used by many Latin American countries in the 20th century:

a. Were designed to force local manufacturers to become more competitive in world markets.

b. Were simply another example of protectionism.

c. Stimulated consumer demand for mortgages denominated in US dollars.

d. Required special approval from the World Bank.

e. Prohibited FC Barcelona from recruiting players from outside of Spain.

2. This year Andrews achieved an ROE of 18.4%. Suppose next year the profit margin (Net Income/Sales) decreases. Assuming sales, assets and financial leverage remain the same next year, what effect would you expect this action to have on Andrews's ROE?

Andrews ROE will decrease.

Andrews ROE will increase.

Andrews ROE will remain the same.

Reference no: EM132137758

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