Explain how import substitution can protect …

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1)The trade was characterized and was commonly called as an inwardly looking trade strategy .Technically this strategy is known as import substitution. 2)This policy aims in replacing or substituting imports with domestic production. 3)In this policy the government protects the domestic industries from foreign competition. 4)Protection from imports took two forms, 1: tariff , the tax on imported goods 2: quotas, they specify the quantity of goods which can be imported. 5)The effect of tariffs and quotas are that it restricts imports and protect domestic firms. 6) The notion behind this policy is that the industries that are developing is in no position to compete against goods produced from developed industrial economies.