Question

Study the following image carefully and identify the trade practice that has successfully replaced foreign goods with domestic production.

• A. Export Promotion
• B. Export Substitution
• C. Import Proliferation
• D. Import Substitution % Correct answer \textbf{Correct Answer: (D)}

Hint:

Import substitution aims to boost local industry by minimizing foreign product dependence.

Answer 1

The Correct Option is D

The image shows imports being stopped and domestic goods replacing them, symbolizing a shift towards relying on local production rather than importing foreign goods. This is known as "Import Substitution", a trade policy strategy aimed at reducing dependency on foreign goods by encouraging domestic industries.