Import substitution policies make use of
A) tariffs that discourage goods from entering a country.
B) quotas applied to goods that are shipped abroad.
C) production subsidies granted to industries with comparative advantages.
D) tax breaks granted to industries with comparative advantages.

Question

Quizplus · Accepted Answer

Import substitution policies use tariffs that discourage goods from entering a country in order to protect domestic industries and stimulate local production. Quotas and production subsidies may also be used, but they are not the primary tool in import substitution policies. Tax breaks may be granted to industries, but they are not specifically tied to import substitution policies.

Import Substitution Policies Make Use of