Question

Study the following image carefully:

Identify the practice that has successfully replaced foreign goods with domestic production.

Options

• Export Promotion

• Export Substitution

• Import Proliferation

• Import Substitution 

Answer 1

Import Substitution

Explanation:

A commercial and economic strategy known as import substitution promotes using domestically produced items in place of imports. By creating alternatives to imported goods, this technique seeks to strengthen local industries and reduce dependence on imports. The picture illustrates how the automotive sector is changing, moving away from cars made abroad and towards ones made domestically, which is consistent with the idea of import substitution.