One of the reasons why import substitution is popular is that _____
A) it increases the quality of products.
B) infant industries would have to compete against global rivals.
C) it benefits those who supply resources to the favored domestic industries.
D) it slows down an economy's progress in the production chain.
E) the emphasis is on comparative advantage and trade expansion.

Question

Quizplus · Accepted Answer

Import substitution policies often involve the government providing support to certain domestic industries, creating a "favored" group of producers. Those who supply resources to these industries benefit from increased demand for their inputs.

One of the Reasons Why Import Substitution Is Popular Is