Import substitution is the replacement of ____ by domestic production _____ protection of ________?
Correct answer: C. imports, high tariffs or import quotas
- A. exports, subsidies
- B. exports, patents
- C. imports, high tariffs or import quotas
- D. imports, subsidies
Explanation
Import substitution aims to produce domestically what was previously imported, commonly using high tariffs or import quotas to shield local producers from foreign competition. It is therefore not primarily a policy of replacing exports.
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