How does import substitution compare with export-led growth?

A. Import substitution is effective in later phases of economic development, whereas export-led growth is effective in all phases of economic development.
B. Import substitution works best when the local industry is a service industry, whereas export-led growth works best when the exports are raw materials.
C. Import substitution has proven effective where it has been used, whereas export-led growth has had limited success.
D. Import substitution seeks to develop local industries to produce items that the country had been importing, whereas export-led growth seeks to develop local industries that can compete in specific niches in the world economy.


Answer: D

Political Science

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