State three negative effects of a country over relying on import goods.
Answer Text: - Hinder growth of home infant industries due to stiff competition/ slows industrialization- Creates a state of dependency on developed countries/ slows exploitation of national resources- Hinder diversification of the economy- The country experiences unfavorable balance of trade/ retards economic development- Whenever there is poor relationship with the trading partner the country experiences shortage of the import goods- The country spends her foreign exchange reserve on imports/ faces devaluation of her local currency.
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