Final answer:
Import substitution refers to the practice of limiting imports to increase domestic production and consumption of goods that would generally be imported, often to protect national security or cultural identity.
Step-by-step explanation:
The term that refers to limiting imports to increase domestic production and consumption of goods that are normally imported is import substitution. This strategy is often used by nations to protect burgeoning domestic industries or for reasons of national security and cultural importance. For instance, a country with a strong national identity tied to a certain product, like Japan with rice, may employ import substitution to preserve cultural values. Similarly, geopolitical rivals might restrict trade to safeguard industries critical for national security. Some nations adopt measures like import tariffs, import quotas, and safety standards to protect their industries against foreign competition and to encourage local consumption of domestically produced goods. Countries often aim to increase domestic production and reduce reliance on imports through such policies.