How does import substitution compare with export-led growth?
A)Import substitution is effective in later phases of economic development,whereas export-led growth is effective in all phases of economic development.
B)Import substitution works best when the local industry is a service industry,whereas export-led growth works best when the exports are raw materials.
C)Import substitution has proven effective where it has been used,whereas export-led growth has had limited success.
D)Import substitution seeks to develop local industries to produce items that the country had been importing,whereas export-led growth seeks to develop local industries that can compete in specific niches in the world economy.

Question

Quizplus · Accepted Answer

Import substitution focuses on developing domestic industries to produce goods that were previously imported, while export-led growth aims to develop industries that can actively compete in the international market. Both strategies have their own advantages and disadvantages, with import substitution being more suitable for countries in the initial stages of economic development while export-led growth can be applied in all stages. However, based on its success rate, import substitution has proven more effective than export-led growth.

How Does Import Substitution Compare with Export-Led Growth