Economics · Economy
Consider the following statements regarding import substitution: Statement I: It is an economic strategy aimed at replacing imports with domestically produced goods. Statement II: Import substitution can help domestic industries grow by capturing market demand previously met by foreign goods. Which one of the following is correct in respect of the above statements?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Statement I is incorr ect, but Statement II i s correct.
- 2Statement I is correct, but Statement II is incorrect.
- 3Both Statement I and Statement II are correct, but Statement II does not explain Statement I.
- 4Both Statement I and Statement II are correct, and Statement II explains Statement I.✓
Correct answer
Both Statement I and Statement II are correct, and Statement II explains Statement I.
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