Industry And Development Vocabulary Practice Test

What is technology transfer in development?

A policy tool to adjust exchange rates. The movement of knowledge and innovations from advanced to developing economies to boost productivity and catch up. The transfer of cash aid from rich to poor countries. The practice of outsourcing manufacturing to nearby regions.

Correct Answer:

The movement of knowledge and innovations from advanced to developing economies to boost productivity and catch up.

Explanation:

Technology transfer in development involves moving knowledge, skills, and innovations from more advanced economies to developing ones to boost productivity and help them catch up. This captures the idea of sharing practical know-how—like technical know-how, processes, and adapt‑able technologies—so that developing countries can adopt and improve them locally, training workers and upgrading industries. Through licensing, technical assistance, joint ventures, and collaboration, countries can close gaps in skills and capabilities and accelerate growth. The other options describe monetary policy, direct cash aid, or relocating production, none of which center on exchanging technology or know-how.

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