Import substitution failed during the 1950s in Latin America because ________.

Question

Quizplus · Accepted Answer

Import substitution policies in Latin America were focused on protecting domestic industries by replacing imported goods with locally produced ones. However, this strategy failed in the long run because protected enterprises required constant subsidizing and were unable to compete globally. This resulted in inefficiencies and high costs for the government, which ultimately undermined the sustainability of the policy.

Import Substitution Failed During the 1950s in Latin America Because