IGCSE Addressing The Development Gap Practice Test

Trading as a development strategy is associated with which outcome?

Creates long-term economic growth and self-sufficiency Reduces unemployment temporarily Increases dependence on aid Distracts from local industries

Correct Answer:

Creates long-term economic growth and self-sufficiency

Explanation:

Trading as a development strategy centers on using international trade to grow the economy—expanding exports, encouraging specialization where a country has a advantage, and attracting investment and technology. The aim is long-term economic growth and self-sufficiency, because earning foreign exchange and building productive capacity lets the economy expand on its own and rely less on external aid over time. While trade can create jobs and affect aid needs, these are not the defining outcome; the core idea is sustainable growth and the ability to support the population without ongoing aid. It also tends to strengthen local industries by connecting them to larger markets rather than distracting from them.

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