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Asked May 15, 2019
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Import-substitution and export orientation: arguments pro

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Expert Answer

Step 1

Import substitution refers to substituting imported goods with home production.

Export orientation implies promoting export goods industries and boosting export sector.

Step 2

The arguments in favor of import substitution are:

  1. Import substitution helps build domestic industry of the import good. It immunizes the economy against international political and economic fluctuations.
  2. Having a domestic industry in place of imports of the same good saves foreign exchange
  3. Building of dom...

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