What is import substituting industrialization (ISI)?
A)A policy of importing goods that are necessary for promoting industrialization.
B)A policy of promoting industrialization to replace foreign goods with domestically produced goods.
C)A policy of encouraging free trade as a means of industrializing quickly.
D)A policy of encouraging the use of alternative resources necessary to fuel industrialization.
E)A government policy of obtaining foreign technology as a means of encouraging industrialization.

Question

Quizplus · Accepted Answer

ISI stands for import substituting industrialization, which refers to a policy of promoting industrialization to replace foreign goods with domestically produced goods. This policy aims to reduce a country's dependence on imports and increase its self-sufficiency by encouraging the local production of goods that were previously imported. This can lead to the development of domestic industries and the creation of new jobs, boosting economic growth. ISI was a popular economic policy in many developing countries during the mid-20th century.

What Is Import Substituting Industrialization (ISI)