Baer: Latin American Industry

Question 1

ISI –

Answer 1

import substitution industrialization
oDrive for self sufficiency (autarky)
oSubstituting imported goods for internal goods
oLatin American companies try to be autarky
oRise in GDP, money would stay in country

Question 2

•Steps to ISI

Answer 2

oTariffs
oProvide incentives for capitalist
•Tax breaks
•Government subsidies
•Offering cheap of free electricity regulation
•Healthcare benefits
oDirect intervention in industries
• Might become an investor in a private company
•Cheap loans
•The state itself might set up the business
oBuild infrastructure
•Transportation, roads, railroads, airports
•Subsidize utilities through power plants, power lines for factories