import substitution
Local production shift
Import substitution is an economic policy where a country reduces dependence on foreign goods by producing them domestically.
Governments typically support this through tariffs, quotas, or subsidies to protect emerging industries from international competition: Brazil pursued import substitution to develop its automotive sector.
The strategy was popular in Latin America and other developing regions during the mid-20th century.
- tariffsTaxes on imports
- trade warRetaliatory economic hostilities
- manufacturingIndustrial product creation
- subsidiesFinancial aid from government
- quotasMandated numerical limits
economic nationalism · buy local · autarky · self-sufficiency · food security · embargoes · home market · supply chains · industrial policy · national champions · trade deficits · trade barriers · homegrown · infrastructure · trade restrictions · preferential treatment · factories · trade agreements
- economic policymonetary policy, tax policy, fiscal discipline, fiscal stimulus, fiscal restraint
- economiesmarket economy, command economy, mixed economy, barter economy, cash economy
- development economicseconomic growth, economic development, poverty reduction, human capital, structural change
- industrial policyindustrial planning, industrial zones, state aid, state enterprises, state ownership
- Latin American Economicsdebt crisis, hyperinflation, foreign debt, export economy, currency devaluation
- protectionismprotectionism, trade barriers, tariffs, trade restrictions, customs duties
import substitutionfree trade
Unrestricted international exchange
globalization · open markets · deregulation · free trade agreement · economic integration