It Is Argued That Import Substitution Is a Misguided Trade

question 28

Essay

It is argued that import substitution is a misguided trade policy if the intent is to promote long-term economic growth. Explain the reasons underlying this argument.

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Definitions:

Holder-In-Due-Course Doctrine

A principle in commercial law that protects a purchaser of a negotiable instrument who takes it for value, in good faith, and without notice of any defect.

Financial Transactions

The exchange of assets between parties, often involving money, securities, or other forms of financial instruments.

Ethnocentrism

The act of judging another culture solely by the values and standards of one's own culture.

Parochialism

Parochialism assumes the ways of your culture are the only ways of doing things.