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JAMB Economics 2002 Question 40

Question 40

Industrialisation

Import substitution aims at

  1. A.substituting agricultural products with industrial ones
  2. B.substituting imports with agricultural exports
  3. C.the diversification of industries
  4. D.improving the balance of payments
Show the answer and explanation

Answer: D (improving the balance of payments)

Explanation

Import substitution means producing at home goods that were imported. This saves foreign exchange and so improves the balance of payments.