Which of the following statements describes the success of import substitution?
A) Approval from the World Trade Organization is required in order for import substitution to be successful.
B) Import substitution has been successful for the great majority of countries.
C) Import substitution is generally unsuccessful in the real world.
D) Import substitution is typically more successful than clustering, but less successful than export-led growth.

Question

Quizplus · Accepted Answer

Import substitution has been generally unsuccessful in the real world. It often leads to inefficiencies, lack of competition, and reliance on government intervention, which ultimately harms the economy. While a few countries have had some success with the strategy, the majority have not.

Which of the Following Statements Describes the Success of Import