Theory question 108
Industrialisation(a) Explain the following strategies of industrialization: (i) Import substitution; (ii) Export promotion.
(b) Highlight any four objectives of industrial development programmes in your country.
Show the model answer
(a)(i) Import substitution: producing at home goods that were formerly imported, usually protected by tariffs and import restrictions, to save foreign exchange.
(ii) Export promotion: encouraging industries to produce for foreign markets, through incentives such as subsidies, tax relief and export credit, to earn foreign exchange.
(b) Any four: create employment; diversify the economy; save and earn foreign exchange; raise national income and standard of living; use local raw materials; acquire technology and skills; reduce dependence on foreign goods; improve balance of payments.
Define each strategy and say how it is carried out.