export oriented industrialization advantages and disadvantages

And are identified which export oriented strategy is better to successful economic growth. Import substitutes are meant to generate employment, reduce foreign exchange demand, stimulate … This situation could be observed in Taiwan, Singapore, and India (Hamilton 1996, p. 1). Copyright © 2020 - IvyPanda is a trading name of Edustream Technologies LLC, a company registered in Wyoming, USA. Additionally, the GDP of this country grew by 300 percent within the period between 1960 and 1986 (Chan & Clark 2013, p. 1958). "Export-Oriented Industrialization and Its Principles." What is the hink-pink for blue green moray? IvyPanda. An import substitution industrialisation (ISI) strategy has three main advantages: However, it is important to remember that income inequality, which is measured by Gini coefficient, was higher in some western countries, even in comparison with some Asian states that relied on export-oriented industrialization. What is the contribution of candido bartolome to gymnastics? IvyPanda. It will be explored every this industrial strategy with research methods. These processes contributed to the improvement in the standards of living. The economic development of this country is primarily dependent on the foreign demand for its products and labor-intensive production. At that time, these countries were profoundly affected by poverty and increasing unemployment rates (Hamilton 1996, p. 1). This discussion suggests that export-oriented industrialization has been a driving force that improved the economic performance of many less developed countries. Therefore, one should not suppose that export-oriented industrialization always brings success. Increase in domestic employment 2. Asian Tigers: Hong Kong, South Korea, Taiwan, and Singapore in the post-World War II period May 23, 2020. https://ivypanda.com/essays/export-oriented-industrialization-and-its-principles/. 15. For example, the state can provide subsidiaries to the enterprises that represent a particular sector of an economy. Export-Oriented Industrialization and Its Principles. The industrial development of these countries can also be explained by the fact that they had strong economic relations with Japan which passed through a period of rapid growth in the early sixties. Introduction. First of all, the emphasis on specific industries can lead to the decrease of diversification. However, this policy may have significant limitations. Finally, it is vital to remember that a less developed country can achieve success through export-oriented industrialization if local laborers are relatively skilled. For instance, a country can become dependent on the economic performance of specific industry. Apart from that, one should bear in mind that export-oriented investment brings foreign direct investment to a country (Chan & Clark, 2013). 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. They paid attention to both domestic and foreign markets since the purchasing power of local clients was also high. Additionally, this strategy eventually leads to the rising income level of people who can improve the quality of their lives. Overall, the resource curse can affect both developing and advanced countries. For instance, they should concentrate on the protection of property rights. Unfortunately, your browser is too old to work on this site. Moreover, they can get access to education (Hamilton 1996, p. 1). Retrieved from https://ivypanda.com/essays/export-oriented-industrialization-and-its-principles/. IvyPanda. IvyPanda. This paper is aimed at examining the advantages and disadvantages of export-oriented industrialization. Nevertheless, this policy can be successful if several prerequisite conditions are present. Campbell, J 2013, Nigeria: Dancing on the Brink, Rowman & Littlefield Publishers, Boston. You are free to use it for research and reference purposes in order to write your own paper; however, you must. For instance, it is possible to mention absence of corruption, accessibility of the world markets, or the development. Why is melted paraffin was allowed to drop a certain height and not just rub over the skin? 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. 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). This is one of the main limitations that should be considered. (2020) 'Export-Oriented Industrialization and Its Principles'. IvyPanda, 23 May 2020, ivypanda.com/essays/export-oriented-industrialization-and-its-principles/. If this initiative is absent, the economy of a country may stop to grow. However, these short-comings do not undermine the positive role that was played by export-oriented architecture. "Export-Oriented Industrialization and Its Principles." Advantages • Make a couple products, and make them well • Slowly stop making simple items and start making more complex ones • Leads to GDP growth Disadvantages • Reliant on government for … Moreover, it can be possible if the barriers to free trade are eliminated. What is the conflict of the story sinigang by marby villaceran? Reducing dependence on labour non-intensive industries such as raw resource extraction and export 3.

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