The role of import on trade and industrialization has always been a part of great discussion and debate. Historically the advanced nations have always enjoyed the privilege of importing goods and services to less developed countries. The thing about import that generates a lot of controversy is related to the payment model of the importing nations. It's been a source of criticism as issues such as labor exploitation have come to the forefront in recent years. Many countries deal in cross-country transactions of various products and services. It has generated a rapid inflow of cash and circulation of products worldwide. Terms such as globalization has assumed much relevance in an era of free trade. Industrialization has also gained significance as many nations have realized that cultivation alone cannot make a country economically prosperous. The role of import on trade and industrialization is relevant in the context of many Latin American and East Asian countries.
In earlier times, it was perceived that cultivation was the sole source of economic advancement for a nation. But the perspectives have changed a lot since the introduction of congenial and friendly trade policies adopted by different countries around the world. Even agricultural products are imported or exported on a regular basis. The business agenda of many nations worldwide contain the trading of various agricultural products. Besides, cultivation or small-scale domestic businesses often fall short of the financial gains that are expected of them. To improve the overall standard of living, a country must evaluate its foreign trade policies and must admit the significant role of import on trade and industrialization.
Import substitution industrialization (ISI) is a popular trading policy which is considered at the time of measuring the role of import on trade and industrialization. According to this policy, a particular country should try to replace the products that it imports with local goods. The term goods mainly refers to finished products. ISI is essentially a development theory which is connected to dependency theory. Although it is by no means a business theory, its theoretical and political parts are firmly seated in the basics of trading principles.
ISI policies regarding the role of import on trade and industrialization are based on the theoretical principles of the Singer-Prebisch thesis and practical implementations of the infant industry argument. Combining these two business verticals, ISI has developed its own set of policies. Its financial policy keeps the domestic currency of a particular nation depreciated and opposes foreign direct investment.
Domestic employment has increased in many countries with the adoption of ISI policies. Market has also grown more resistant to sudden economic downfalls. Transportation expenditures have also diminished as long distance export is not required as per ICI trade theories. | 
