ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Import substitution is a strategy under trade policy that abolishes the import of foreign products and encourages production in the domestic market.

Detailed explanation-2: -Inward looking trade strategy refers to the policy under which India became self-dependent for the production of goods and services and to protect the domestic industries. It is done by import restriction or substitution in which very less amount of goods and services were imported from foreign.

Detailed explanation-3: -(a) export promotion The strategy of making our own domestic market in foreign lands a competitive one and make things harder for our own traders are called export promotion strategy.

Detailed explanation-4: -Inward oriented strategy is the trade strategy adopted by a country to restrict international trade. Import restriction and import are the two components of inward oriented strategy. Import restriction is limiting imports by imposing high tariff etc. Import substitution is producing importable goods domestically.

Detailed explanation-5: -Import substitution is a trade strategy used by developing countries to restrict imports of manufactured goods and preserve the domestic market for home producers.