Import-substitution development policies have been especially effective in promoting employment in newly industrializing sectors because these policies discourage the import of foreign capital goods.

Question

Quizplus · Accepted Answer

Import-substitution development policies aim to promote domestic production of goods that were previously imported, and often involve restrictions or tariffs on imported goods. While this can encourage the growth of domestic industries, it does not necessarily directly promote employment. In fact, some argue that import-substitution policies can lead to inefficiencies and higher costs in domestic production, ultimately hindering job creation.

Import-Substitution Development Policies Have Been Especially Effective in Promoting Employment