On the Choice of Import Substitution Strategy and Diversification Strategy

Abstract

Basic Analysis of Import Substitution Strategy Import substitution is a transitional strategic model. The implementation of import substitution is based on the economic development strategy adopted by developing countries to counteract the market competition of developed countries. A country's industrial base is backward and the overall level of the national economy is low. In order to change the backward situation, adopting the import substitution strategy at the right time will help to rapidly develop the national industry and establish a complete industrial system and national economic system. But at the same time, it should be noted that the choice of import substitution strategy is not the purpose after all. This is because: