Solution

Import substitution refers to the process of discouraging the import of goods that can be produced domestically. This strategy makes an economy less dependent on the imported goods and at the same time provide financial facilities, subsidies, knowhow and licenses to produce those goods in the country and allowing the producers to sustain and develop. There will be no competition as international producers are out of equation giving them monopoly status. By earning more profits they can enhance their knowledge which will be beneficial in expanding to international markets.