Which of the following would be a policy consistent with ISI?
A)Ghana attempts to reduce its dependence on imported oil by developing alternative energy sources.
B)Malaysia reduces regulations on its banks to encourage investment.
C)China keeps its currency undervalued to make Chinese exports cheaper.
D)Brazil places tariffs on cars made in the United States.

Question

Quizplus · Accepted Answer

Import Substitution Industrialization (ISI) is a trade and economic policy that advocates replacing foreign imports with domestic production. Placing tariffs on imported goods, like cars from the United States, is a strategy to protect and encourage the growth of domestic industries, which is consistent with ISI.

Which of the Following Would Be a Policy Consistent with ISI