Question

An industrialization policy of restricting imports in order to boost local production for local consumption of goods that would otherwise be imported is known as ________

Answer 1

Answer:

The correct answer is letter "A": import substitution.

Explanation:

Import substitution is the strategy by which a government sets restrictions on imports so the same products being imported are consumed domestically instead of being exported. This approach is implemented to boost domestic production which increases the employment rate of a country.

Protectionist countries tend to impose tariffs on other countries' imports in an attempt to prioritize the industries within their borders.