The import-substitution strategy of industrialization is to encourage?

A. domestic production
B. large-scale production
C. importation
D. exportation

Correct Answer:

Option A – domestic production

Explanation

Import substitution also referred to as import substitution industrialization (ISI), is a set of policies that addresses the developmental concerns of structurally deficient economic countries. As the name suggests, the ultimate goal of ISI is to promote a country’s economic industrialization by encouraging domestic production and discouraging imports of consumer goods.