Import substitution policies have been highly successful in fostering employment in new, emerging industries because these policies prevent the import of foreign capital goods.

Question

Quizplus · Accepted Answer

Import substitution policies aim to promote domestic production by reducing imports of finished goods and promoting the production of those goods domestically. They do not prevent the import of foreign capital goods, but rather encourage the development of domestic industries that can produce these goods. Therefore, they may not necessarily foster employment in new, emerging industries.

Import Substitution Policies Have Been Highly Successful in Fostering Employment