Import-substitution industrialization often leads to

Question

Quizplus · Accepted Answer

Import-substitution industrialization typically leads to initial growth as domestic industries are protected from foreign competition. However, this growth is often followed by heavy borrowing to finance industrialization, which can lead to severe indebtedness. This borrowing can lead to long-term economic problems, as seen in several Latin American countries in the 1980s and 1990s. Therefore, choice B is the best answer. choices A, C, and D are all incorrect as they do not accurately reflect the outcome of import-substitution industrialization.

Import-Substitution Industrialization Often Leads to