Import substitution policies make use of:
A) Tariffs that discourage goods from entering a country
B) Quotas applied to goods that are shipped abroad
C) Production subsidies granted to industries with comparative advantages
D) Tax breaks granted to industries with comparative advantages

Question

Quizplus · Accepted Answer

Import substitution policies aim to reduce imports and increase domestic production, which can be achieved by imposing tariffs on imported goods, making them more expensive and therefore less attractive to consumers. Quotas may also be used to limit the quantity of imported goods. Production subsidies and tax breaks may support domestic industries, but they do not directly discourage imports.

Import Substitution Policies Make Use Of