What is a balanced expert evaluation of import substitution policy?

Correct answer: It could grow self reliant industry but protectionism could create efficiency problems

Import substitution can help a newly independent or developing country build industries that are not yet strong enough to face foreign competition. Protection may give local factories time to learn, invest, create jobs, and reduce dependence on imported manufactured goods. However, protection is not automatically beneficial forever. If firms remain protected for too long, they may face little pressure to reduce costs, improve quality, or use resources efficiently.

Option A gives the balanced evaluation required here. It recognizes the possible gain—growth of self-reliant domestic industry—and the possible weakness—inefficiency caused by excessive or prolonged protectionism. The policy was not a military alliance and was directly connected with domestic industry. It also did not succeed without limits in every country; results depended on administration, market size, technology, competition, and the ability to export or innovate. Thus A is the only complete and careful assessment.