Question: The substitution principle supports which of the following statements? While designing an economy to attract multinational corporations has some short-term economic benefits, it impedes a country's overall economic development. While sending production abroad does reduce labor costs for multinational corporations in the short term, the long-term transportation costs ultimately make outsourcing unprofitable. Countries must allow lower labor wages for their citizens in order to grow the national economy overall by attracting multinational corporations. Although outsourcing increases transportation costs, the reduction in labor costs still makes it the most profitable choice