Which trade strategy have developing countries used to restrict imports of manufactured goods so that the domestic market is preserved for home producers,who thus can take over markets already established in the country?
A) International commodity agreement
B) Export promotion
C) Multilateral contract
D) Import substitution

Question

Quizplus · Accepted Answer

Import substitution is the trade strategy used by developing countries to restrict imports of manufactured goods and promote the use of domestic goods. The strategy aims to protect the domestic market by reducing foreign competition and allowing local producers to establish themselves in the market. It involves promoting and developing local industries to produce goods that were previously imported, thus reducing the country's dependence on foreign goods. This strategy has been used by many developing countries, including India and Brazil, with varying degrees of success.

Which Trade Strategy Have Developing Countries Used to Restrict Imports