Although initially successful in achieving impressive economic growth, import-substitution ultimately

Question

Quizplus · Accepted Answer

Import-substitution policies aimed to stimulate domestic industries by protecting them from foreign competition through subsidies, tariffs, and other barriers. While initially successful in achieving economic growth, it ultimately led to the development of inefficient and uncompetitive industries that relied heavily on state subsidies, which hindered long-term economic growth. This resulted in the inability to compete with foreign industries, causing economic problems in the long run.

Although Initially Successful in Achieving Impressive Economic Growth, Import-Substitution Ultimately