(2020, May 23). It should be borne in mind that the comparative advantage can be explained by several factors, for instance, the presence of natural resources, the availability of skilled and less expensive labor force, or even the climate of a country. What is the hink-pink for blue green moray? This discussion suggests that export-oriented industrialization has been a driving force that improved the economic performance of many less developed countries. This is the main prerequisite for a person’s ability to climb the social ladder and become competitive in the labor market. Import Substitution Industrialization (ISI) Definition Government strategy that emphasizes replacement of some agricultural or industrial imports to encourage local production for local consumption, rather than producing for export markets. Nevertheless, these problems encountered by Nigeria can be resolved by the government. IvyPanda. Introduction. Advantages of export-led growth. For instance, it is possible to mention absence of corruption, accessibility of the world markets, or the development. As a result, their actions can lead to the stagnation of many economic sectors. Similar strategies have been implemented in India. This trend has been observed in other countries such as Singapore or Hong Kong. Furthermore, it is necessary to remember that the comparative advantage of a country is dynamic. The database is updated daily, so anyone can easily find a relevant essay example. Nevertheless, governmental officials cannot always predict emerging trends the world economy (Dickson 2013, p. 1991). Later, in this strategy economic growth will be analyzed. What is export-oriented strategy. Thus, one can say that the development of these countries had similar patterns. The export-oriented economy of such countries cannot function effectively provided that other countries adopt protectionist policies. What is the conflict of the story sinigang by marby villaceran? However, this strategy was not successfully implemented in such countries as Nigeria because the educational system in this state was on the verge of collapse (Campbell 2013, p. 15). Both policies have advantages and disadvantages. However, within the last two decades, India began to play an important role in information technology industry (Rameshan, 2008, p. 67). For example, the state can provide subsidiaries to the enterprises that represent a particular sector of an economy. It will be explored every this industrial strategy with research methods. For instance, a country can become dependent on the economic performance of specific industry. This essay on Export-Oriented Industrialization and Its Principles was written and submitted by your fellow student. If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda. May 23, 2020. https://ivypanda.com/essays/export-oriented-industrialization-and-its-principles/. What are the advantages and disadvantages of export oriented industrialization? Moreover, these nations had to rely on advanced technologies in order to retain comparative advantage. This is the main thesis that can be put forward. Import Substitution Advantages And Disadvantages. Nevertheless, this situation can be attributed to such factors as corruption, lack of infrastructure and the collapse of the educational system (Campbell 2013, p. 15). Increase in domestic employment 2. Why is melted paraffin was allowed to drop a certain height and not just rub over the skin? It contains thousands of paper examples on a wide variety of topics, all donated by helpful students. Finally, it is vital to remember that a less developed country can achieve success through export-oriented industrialization if local laborers are relatively skilled. Export oriented industrialization is indispensable for economic growth. Bair, J 2009, Frontiers of Commodity Chain Research, Stanford University Press, Palo Alto. This situation could be observed in Europe and the United States. May 23, 2020. https://ivypanda.com/essays/export-oriented-industrialization-and-its-principles/. The most vivid example of this transformation is Japan because it acquired leading roles in such industries as automobile manufacturing or electronics. Asian Tigers: Hong Kong, South Korea, Taiwan, and Singapore in the post-World War II period Kui-Wai Li, in Redefining Capitalism in Global Economic Development, 2017. Advantages• Make a couple products, and make them well• Slowly stop making simple items and start making more complex ones• Leads to GDP growthDisadvantages• Reliant on g, What are the advantages and disadvantages of export oriented industrialization. What is the contribution of candido bartolome to gymnastics? Abstract: Purpose of this research paper is research export-oriented industrialization. Overall, it is possible to argue that export-oriented industrialization can indeed contribute to the growth of economy because this policy can increase the income level and purchasing power of people living in less developed countries. Exports of goods and services are an injection into the circular flow of income leading to a rise in aggregate demand and an expansion of output. This strategy enabled many states to raise the standards of living and boost the development of industries. 2020. This paper is aimed at examining the advantages and disadvantages of export-oriented industrialization. For example, one can speak about such obstacles as import quotas or tariffs (Dickson 2013, p. 1991). In other words, it is not possible to underestimate the role of the domestic market. This economic policy has been described as one of the factors that contributed to the development of many less advanced countries that were able to raise their standards of living. Discuss the advantages and disadvantages of Import Substitution Industrialization and Export Oriented Industrialization as strategies for development of the Global South. These are the main aspects that can be identified. This economic policy has been described as one of the factors that contributed to the development of many less advanced countries that were able to raise their standards of living. Moreover, it can be possible if the barriers to free trade are eliminated. Rameshan, P 2008, WTO, India, and Emerging Areas of Trade: Challenges and Strategies, Excel Books India, Delhi. Furthermore, this policy implies that foreign market can be more profitable for a country, than the domestic one. What is the conflict of the story of sinigang? Promotes effective external trade in developing countries. Reducing risk balancing growth. Import substitution industrialization (ISI), development strategy focusing on promoting domestic production of previously imported goods to foster industrialization. Hamilton, G 1996, Asian Business Networks, Walter de Gruyter, New York. Nevertheless, it has also been argued that this strategy can lead to exploitation of laborers and increasing inequality in the society (Schuerkens 2010, p. 102). "Export-Oriented Industrialization and Its Principles." One should bear in mind that in the middle of the twentieth century various countries could be viewed less developed, for instance, one can mention South Korea, Taiwan, or Singapore. "Export-Oriented Industrialization and Its Principles." Export-Oriented Industrialization and Its Principles. Nevertheless, policy-makers and economists should remember that the implementation of this strategy depends on such factors accessibility of market, the level of corruption, skills of local workers, and willingness of entrepreneurs to invest into new technologies. Unfortunately, your browser is too old to work on this site. The most eloquent example is Nigeria which exports oil and gas; however, other areas of this economy remain underdeveloped (Campbell 2013, p. 15).