Question

Discribe the import substitution?​

Answer 1

Explanation:

Import substitution is a strategy under trade policy that abolishes the import of foreign products and encourages for the production in the domestic market. The purpose of this policy is to change the economic structure of the country by replacing foreign goods with domestic goods.

Answer 2

Import substitution is a trade policy which is mainly intended to restrict or reduce the import level of any country and attain economic self-sufficiency in the process.

Explanation:

• Import substitution is a protectionist national policy,mainly aimed at developing self-sufficiency in the production of various goods and services,thereby economically supporting domestic and local industries to become self-reliant by protecting them from international market competition.
• Some of the administrative measures or policies to promote import substitution and restrict the import level commonly include import tariffs or quotas or customs duty on imported goods and services from the foreign countries.
• Import substitution in any country often involves domestic economic or financial policy support from the government such as direct economic subsidies to local companies or industries,tax relief or reduction for domestic companies and business organisations,reduction in various administrative regulations or restrictions on domestic commercial or business activities and so forth.
• One of the major objectives of import substitution is to strengthen the various domestic industrial sectors to stimulate economic growth by expanding the national income or GDP level of any country accompanied by an increase in the employment level of the respective country.
• Import substitution can be an effective economic policy to support and strengthen the sick or dying industries in the country.