One of the reasons that import substitution is popular is that:
A)it increases the quality of products.
B)infant industries would have to compete against global rivals.
C)it benefits suppliers of resources to the favored domestic industries.
D)it slows down the progression through the production chain.
E)the emphasis is on comparative advantage and trade expansion.

Question

Quizplus · Accepted Answer

Import substitution benefits suppliers of resources to the favored domestic industries because it reduces the reliance on imported goods and instead promotes the use of domestic resources to support domestic industries. This can lead to increased demand and higher prices for local suppliers of resources. However, import substitution can also result in inefficiencies and higher costs for consumers due to the lack of competition from global rivals.

One of the Reasons That Import Substitution Is Popular Is