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Calvin Fok, INTJ ;Group's partners ï¼Chinese student. Views. Import substitution refers to the use of domestic products to replace imported goods, or, by limiting the import of industrial manufactured goods to promote domestic industrialization.
1 Import substitution generally go through two stages.  In the second stage, the import substitution from the consumer goods to the domestic shortage of capital goods and intermediate goods production, such as machine manufacturing, petroleum processing, iron and steel industry and other capital intensive industries.