What is import substitution?
A) The replacement of foreign-produced manufactured goods with domestically-produced manufactured goods.
B) The replacement of foreign-produced manufactured goods with less expensive foreign-produced manufactured goods.
C) A government effort to expand a country's imports by increasing incentives and decreasing disincentives.
D) A government attempt to develop synthetic substitutes for goods that they normally import.

Question

Quizplus · Accepted Answer

Import substitution refers to a government strategy of promoting domestic industries and reducing foreign dependence by replacing imported goods with domestically-produced goods. This is achieved by imposing import tariffs, subsidies, and regulations to protect and support the domestic industry.

What Is Import Substitution