Paper 2 · November 2020 · role of enterprise in the economy
State the policy of producing goods locally that were previously bought from abroad, so that foreign currency is saved.
Model answer
import substitution
Also accepted: import substitution industrialisation, import substitution industrialization
Explanation
Local production of what was imported saves the scarce foreign currency the imports used and creates jobs at the same time. It works only where the local producer can eventually match imported quality and cost.
Derived from ZIMSEC Business Enterprise Skills Paper 2, Nov 2020, Q1