Import substitution industrialization, as its name suggests, is a policy and trade program which advocates replacing imported goods with domestically produced goods. It basically relies on the principle that a developed country should try to reduce its dependency on imports by producing its own manufactured goods. This involves the introduction of new processes and equipment. In addition, it also involves encouraging foreign investment in developing countries where there is an existing industry, or in countries where the local market is yet to be developed.
The concept of this trade program was first conceived by the World Trade Organization. According to this program, all member countries are supposed to adopt policies which favor developing countries that have been devastated by external forces such as war, natural disaster and poverty. This is aimed at reducing the trade deficit between such countries and developed countries, which may also encourage them to develop their own industries.
There are two basic reasons why countries adopt import substitution. First, the domestic economy can become self sufficient. Second, it increases the income of the people, thereby reducing the dependence on other countries’ goods. The first reason can be achieved by promoting exports in sectors which are commonly used by a domestic economy. The second one, by increasing the number of domestic producers, can be achieved by providing incentives for the domestic industry.
The main objective of import substitution is to increase the productivity of the domestic economy. It also helps to increase the standard of living of the people. In addition to these, it also facilitates the smooth flow of trade and commerce between countries.
The most important thing to remember about import substitution is that it is not a complete solution to the problem of global warming. Although the reduction in dependence on foreign sources of energy and materials has led to less pollution and environmental damage, the effects are still gradual. As a result, there is no permanent reduction in the use of fossil fuels. And because of that, environmental issues will continue to pose serious challenges to the development of industrial societies.
Nevertheless, import substitution has the ability to significantly reduce the dependency on foreign sources of raw materials and energy, thereby reducing emissions and decreasing the consumption of fossil fuels. Thus, import substitution will contribute positively to the development of a healthy and secure environment.
Imports are replaced by domestically manufactured products when they are used in production processes. This means that production processes are not altered in any way. Thus, they will not affect the quality or performance of the products which are produced. As a result, domestic resources will be utilized. And it will also mean the use of locally produced raw materials.
This type of industrialization is also called “inter-dependence industrialization.” Industrialization is an economic strategy which aims to reduce the dependence of an economy on external sources of resources and capital. A major goal of the strategy is to improve the productivity of the economy through the effective utilization of available resources.
Industrialization is often associated with the growth of economies. However, it is also related to the development of a country’s political and social system.
Industrialization refers to the process of making an entire production process more efficient through the utilization of available resources. It also involves the utilization of available materials from other countries, especially those whose production is cheaper and which are considered to be environmentally friendly. When the production process is made more efficient, it increases the productivity of the production of the domestic industry.
In order to make economic development faster, the process of industrialization means increasing the output of a country’s productive capacity. This involves the employment of the most efficient techniques in producing goods and services. Because the production process has to be made more efficient, the products produced are also designed in such a way as to provide maximum output.
Economic growth is also influenced by the implementation of environmental measures. These measures involve the creation of environmental regulations. Industrialization also involves the development of a comprehensive energy plan. This plan is designed to ensure that the country’s energy consumption does not exceed the level which is needed to meet the country’s industrial needs.