Question

Import substitution industrialization.

Make some discussion questions and answer the question related to import substitution industrialization.

With clear explanation. By using your creativity.

(with clear explanation)

Answer 1

What is import substitution industrialization ?

Countries that have been importing products ,will try to make the products themselves and thus make the countries less reliant on other states.

What are import substitution policies?

Import substitution policies lay stress on replacing imports with domestic production.

Why there is advocacy for domestic production?

This would render protection to domestic industries.

How do you know that import substitution inustrialization is taking place ?

A change in the ratio of imports by the sum of the domestic outputs plus imports of the  products ,help in measuring Import substitution industrilization .If the ratio decreases , import substitution has occurred in that sector

.How can money for imports be controlled and prevented from leaving the country?

In an attempt to stop money from leaving the country ,local demand for goods and services may be connected with the local suppliers of goods and services..This will stop flow of money outside the country as demand for foreign goods will be replaced by goods produced in domestic markets.

What are the benefits and challenges of ISI?

By focusing on ISI , governments can become self sufficient.This will help the country to build their own economy ,provide jobs to the people,and thus help the economy to grow.One drawback is that ISI creates obsolete products as they are not engaged in international competition.