What is import substitution, Business Economics

Assignment Help:

What is import substitution?

Import substitution:

It is a government industrialisation policy for development by replacing imports along with domestic production.

  • Stage 1: Identify labour intensive domestic industries now met by imports for example textiles, shoes and clothes.
  • Stage 2: Import the capital and intermediate goods required to make labour intensive and low capital goods.
  • Stage 3: Prevent such infant industries along with quotas and tariffs. Domestic output starts to replace imports.
  • Stage 4: Start exporting or make own capital goods.

 


Related Discussions:- What is import substitution

What are the requirements of national figure to adjusting, What are the req...

What are the requirements of national figure to adjusting? National figures first require adjusting: • For population: Dividing Gross Domestic Product (GDP) by total populat

Demand supply, demand and supply curve for luxury goods

demand and supply curve for luxury goods

Baumol''s, the basic assumption of the static model

the basic assumption of the static model

Economists group countries at various stages of development, How do economi...

How do economists group countries at various stages of development? There are three major forms of classifications: • IMF: Developing and industrial, transitional economi

How is the equality of income distribution measured, How is the equality of...

How is the equality of income distribution measured? The Gini coefficient is a statistical type measure of income distribution. This Gini coefficient is: • 0, which impl

Explain foreign direct investment, Explain foreign direct investment: ...

Explain foreign direct investment: 1.  Identify and briefly explain three costs of foreign direct investment (FDI) for a country such as China (the home country) and two benef

Monopolly, explain how a price disciminating monopoly increases profits

explain how a price disciminating monopoly increases profits

State intervention approaches for promoting development, Explain the state ...

Explain the state intervention approaches for promoting development. State intervention can result within: • Large bureaucracies staffed through friends and relatives of the

Macro economics, There are three firms in an economy: A, B, and C. Firm A b...

There are three firms in an economy: A, B, and C. Firm A buys $450 worth of goods from firm B and $260 worth of goods from firm C, and produces 260 units of output, which it sells

What are institutions, What are institutions? Institutions are formal ...

What are institutions? Institutions are formal organisations as like: • Government : the group of some people and institutions who control and manage a country Civic socie

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd