Which of the Following Describes Import Substitution

question 35

Multiple Choice

Which of the following describes import substitution?

• A) changing from one foreign supplier to another
• B) replacing locally produced goods with imports
• C) manufacturing goods that had been previously imported
• D) exporting and importing the same type of product

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Definitions:

Imported

Products or services that are imported from one country into another for the purpose of being sold or utilized.

World Price

The global market rate at which a good can be bought or sold, influenced by supply and demand on an international scale.

United States

A country in North America consisting of 50 states and a federal district, known for its significant influence on world economy, politics, and culture.

Deadweight Loss

The loss of economic efficiency that can occur when equilibrium for a good or a service is not achieved or is not achievable.