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shutvik [7]
4 years ago
13

Santiago, a Guatemalan entrepreneur, has started his own local paper-manufacturing company but fears that he won't be able to co

mpete with international paper mills that already sell to Guatemalan businesses. To assist Santiago, the Guatemalan government has imposed tariffs on imported paper and extended his credit to enable the purchase of up-to-date equipment. This scenario exemplifies __________.
Social Studies
1 answer:
pav-90 [236]4 years ago
6 0

Answer: Import substitution industrialization

Explanation:

Import substitution industrialization is an economic policy embarked on by a government in order to help local production of goods instead of importing them. This strategy can be used to improve the economy of a country, it is highly recommended for developing countries as it will reduce their rate of importation and aid industrialization thus, leading to rapid economic growth and development.

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