Import substitution industrialization in Latin America

Question

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Import substitution industrialization (ISI) in Latin America aimed to reduce or eliminate imports of manufactured goods and replace them with domestically produced goods. The policies included high tariffs on imports, subsidies to domestic industries, and restrictions on foreign investment. However, these policies also created disincentives to export, as the focus was on developing domestic industries and protecting them from outside competition. ISI emphasized import substitution, not export growth, which led to a decline in primary commodity exports.

Import Substitution Industrialization in Latin America