key term - Import Substitution Industrialization (ISI)

Definition

Import Substitution Industrialization refers to a development strategy where a country focuses on producing goods domestically instead of importing them from other countries. This is done to reduce dependence on foreign imports and promote domestic industries.

Related terms

Protectionism: Protectionism refers to the use of trade barriers such as tariffs or quotas to protect domestic industries from foreign competition.

Infant Industry Argument: The infant industry argument suggests that new and emerging industries need protection from international competition in order to grow and become competitive.

Export-Oriented Industrialization (EOI): Export-oriented industrialization is an economic strategy where a country focuses on producing goods for export markets rather than for domestic consumption.