Concept:A balance of payments deficit occurs when a country's imports exceed its exports.
The correction requires reducing import expenditure or increasing domestic production.
Explanation:Import substitution strategy encourages local production of goods that were previously imported.
This reduces the demand for foreign goods and lowers the import bill.
As domestic industries grow, the country becomes less dependent on foreign supply.
Over time, this helps reduce the balance of payments deficit.
Option A is wrong because currency appreciation makes imports cheaper and increases them.
Option B is wrong because restricting trade with all countries is extreme and harms the economy.
Option C is wrong because depreciation should discourage imports, not encourage them.
Therefore, the most suitable policy is import substitution.
Answer:D. adopt import substitution strategy.