What characterizes import-competing industries?

Import-competing industries are defined by their production of goods that face competition from imported products in the domestic market. This means that these industries are specifically involved in producing items that consumers can also acquire from foreign sources. The presence of these imports creates a direct competitive pressure on local producers, influencing factors such as pricing, quality, and market share.

In contrast to the other options, industries that primarily export goods are focused on selling their products overseas rather than competing with imports. Industries that do not engage in international trade would not qualify as import-competing since they are not operating in a market where international competition exists. Additionally, having lower production costs than foreign competitors is not a defining characteristic of import-competing industries; rather, these industries may struggle with higher costs compared to imports, which can impact their ability to compete effectively. Therefore, the correct characterization emphasizes the focus on goods that are also imported, highlighting the direct competition that defines import-competing industries.