Match each industrial strategy or policy instrument on the left with its corresponding primary economic objective on the right.
- Import Substitution Industrialization (ISI)Replaces imported finished consumer goods with domestically manufactured alternatives behind tariff barriers.
- Export Promotion Strategy (EPS)Stimulates domestic manufacturing of goods targeted for international consumption using tax incentives and subsidies.
- Infant Industry ProtectionImposes temporary trade restrictions to shield newly established domestic firms until they achieve competitive economies of scale.
- Backward Integration PolicyEncourages manufacturing firms to source and process local primary raw materials rather than importing intermediate inputs.
Answer
Import Substitution Industrialization pairs with replacing imported finished consumer goods with domestically manufactured alternatives. Export Promotion Strategy pairs with stimulating domestic manufacturing of goods targeted for international markets. Infant Industry Protection pairs with imposing temporary trade restrictions to shield new firms until they achieve economies of scale. Backward Integration Policy pairs with encouraging manufacturing firms to source and process local primary raw materials.
Each policy matches its precise economic rationale: Import Substitution Industrialization focuses on domestic replacement of consumer imports; Export Promotion Strategy targets external market production; Infant Industry Protection provides temporary shields for growing firms; and Backward Integration mandates domestic raw material sourcing.
Step-by-Step Solution
Key Concept
Industrialization Strategies and Manufacturing Policies