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The following situation is an example of an export promotion strategy. Guatemala has a comparative advantage in the production of bananas and, as a result, the Guatemalan government grants incentives to banana growers to improve their performance in the international marketplace.
Export Promotion Strategy
A governmental or organizational policy aimed at encouraging and supporting firms to sell their products or services abroad.
Comparative Advantage
The ability of an entity to produce a good or offer a service at a lower opportunity cost than its competitors, leading to more efficient trading opportunities.
- Assess the effect of government strategies on economic progress and expansion.
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Learning Objectives
- Assess the effect of government strategies on economic progress and expansion.
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