Concept:Import substitution industrialization (ISI) is a policy that encourages domestic production by reducing reliance on imported goods.
Explanation:This strategy seeks to replace foreign imports with goods manufactured within the country.
It is often adopted by developing nations to build a strong local industrial base.
To achieve this, the government may impose high tariffs, import quotas, or restrictions on foreign products.
It can also offer subsidies, tax relief, and other incentives to local manufacturers.
The main goal is to meet domestic demand through internal production.
This approach helps to conserve foreign exchange and create employment opportunities.
Import substitution is not aimed at boosting exports, which is the focus of export promotion strategies.
It also does not encourage importation or simply increasing the scale of production.
Instead, the entire policy centres on producing goods locally for home consumption.
By doing so, the country becomes more self-sufficient and less dependent on other nations.
Thus, the strategy is meant to encourage domestic production.
Answer:A. domestic production.