Chapter 19, Problem 2.3PA

To determine

Between import-substitution policy and export-promotion policy, the policy that is preferred by the domestic producers and consumers.

Concept Introduction:

The measures taken by the government to reduce the import of goods and services by promoting local businesses to develop the goods and services indigenously is known as import-substitution policy whereas the measures taken by the government to promote the export of locally produced goods and services in the global market is known as an export-promotion policy.