Which trade strategy have developing countries used to restrict imports of manufactured goods so that the domestic market is preserved for home producers?
A) international commodity agreement
B) export promotion
C) multilateral contract
D) import substitution
E) export subsidies

Question

Quizplus · Accepted Answer

This trade strategy is known as import substitution. Developing countries have used this strategy to protect their domestic markets by imposing high tariffs or other trade barriers on imported manufactured goods. The aim is to encourage the growth of local industries that produce these goods, rather than relying on imports. This approach is focused on reducing a country's dependence on foreign markets and promoting economic self-sufficiency. Export promotion and export subsidies are trade strategies that focus on encouraging the sale of domestic goods in foreign markets, rather than limiting imports. International commodity agreements and multilateral contracts are aimed at regulating the prices and trade of specific commodities or products, rather than restricting imports.

Which Trade Strategy Have Developing Countries Used to Restrict Imports