Which of the following is a reason why import substitution is popular?
A) There was never any demand for the products in question.
B) Infant industries would have to compete against global rivals.
C) It benefits suppliers to the favoured domestic industries.
D) It slows down the progression through the production chain.

Question

Which of the following is a reason why import substitution is popular?  
A) There was never any demand for the products in question. 
B) Infant industries would have to compete against global rivals. 
C) It benefits suppliers to the favoured domestic industries. 
D) It slows down the progression through the production chain.

Quizplus · Accepted Answer

Import substitution benefits domestic suppliers, as they are given preference over foreign suppliers in the protected market. This can lead to greater profits for the domestic suppliers and may encourage government support for this policy.

Which of the Following Is a Reason Why Import Substitution