Explain how import substitution can protect domestic industry

1.	Explain how import substitution can protect domestic industry
Answer» ANSWER: Import Substitution Strategy not only reduces an ECONOMY's dependence on the foreign goods but also provides impetus to the domestic firms. GOVERNMENT provides various financial ENCOURAGEMENTS, incentives, licenses to the domestic producers to produce domestically the import substituted goods.

Answer»

Import Substitution Strategy not only reduces an ECONOMY's dependence on the foreign goods but also provides impetus to the domestic firms. GOVERNMENT provides various financial ENCOURAGEMENTS, incentives, licenses to the domestic producers to produce domestically the import substituted goods.

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