The concept of import substitution is best characterized as
A) purchasing imported goods to replace locally produced goods.
B) manufacturing goods that had previously been imported or available through trading.
C) exporting and importing the same type of product.
D) changing suppliers of imported goods.

Question

Quizplus · Accepted Answer

Import substitution refers to a strategy in which a country attempts to reduce its dependence on imported goods by producing those goods domestically instead. This is done by setting up domestic industries and manufacturing goods that were previously imported. Therefore, choice B is the correct answer.

The Concept of Import Substitution Is Best Characterized as