What is the term for the policy of replacing or substituting imports with domestic production?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. Import substitution industrialization.
The term for the policy of replacing or substituting imports with domestic production is Import Substitution Industrialization (ISI). This economic strategy aims to reduce a country's dependence on imported goods by promoting the development of local industries. ISI encourages the growth of domestic industries by providing them with protection from foreign competition through tariffs, subsidies, and other support measures. The goal is to foster economic self-sufficiency and build up local manufacturing capabilities.