Explain how import substitution can protect domestic industry.?
Dear student,
Import substitution is done by tarrifs and import quotas.Its main goal is simple to provide a protective environment to the domestic industries.Import substitution helps the infant or weak domestic industries to develop,grow and increase their competitiveness just by protecting them from foreign competition, increasing the production of domestic goods and promoting them to use new and cheaper technology for producing goods.
Regards.
Import substitution is done by tarrifs and import quotas.Its main goal is simple to provide a protective environment to the domestic industries.Import substitution helps the infant or weak domestic industries to develop,grow and increase their competitiveness just by protecting them from foreign competition, increasing the production of domestic goods and promoting them to use new and cheaper technology for producing goods.
Regards.