ECONOMICS
ECONOMIC GROWTH
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What is Import Substitution?
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Growth and trade strategy where a country imports simple consumer goods to boost its domestic industry
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Growth and strategy where a country decides on importing all simple consumer goods to substitute infant industries that lack financial capital for domestic production
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Growth and trade strategy where a country begins to manufacture simple consumer goods for the domestic market to promote its domestic industry
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Growth and trade strategy where a country begins to manufacture substitute simple goods for the domestic market to promote domestic industry competition with the import market
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Explanation:
Detailed explanation-1: -Import substitution industrialization is an economic theory adhered to by developing countries that wish to decrease their dependence on developed countries. ISI targets the protection and incubation of newly formed domestic industries to fully develop sectors so the goods produced are competitive with imported goods.
Detailed explanation-2: -Importing goods on a barter basis.
Detailed explanation-3: -Import substitution is a trade strategy used by developing countries to restrict imports of manufactured goods and preserve the domestic market for home producers.
Detailed explanation-4: -Another name for import substitution strategy is inward looking trade strategy.
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