Trade Strategies For Growth And Development

Question 0

Analysis ISI

Answer 0

Pros:
Protect jobs in Dom market
Local culture+ social habits
Protects from Econ power+ influence MNCs

Cons:
Only projects SR (growth lower LR, less job creation)
No comp adv or specialisation benefits 
Domestic inefficient 
Int anger (retaliatory)

Question 1

Import substitution industrialization and necessary conditions

Answer 1

Produce goods domestically over imports

Necessary conditions:

• policy of org dom production
• subsidies to encourage dom prod
• protectionism

Question 2

Export promotion & necessary conditions

Answer 2

Concentrate on export rev led growth, comparative adv
Primary product (down trend in Protectionism)
Manufactured(Asian tigers, where comp adv

Conditions:
Liberalised trade
Floating xchange rate
Invest in prov of infra to allow trade
Dereg and min gov intervention

Question 3

Export promotion analysis

Answer 3

Cons:
Success Asian Tigers - Developed protectionism (low-cost labour)
Removes comp adv
Tariff escalation - developed exporting to LEDCs -primary prod
Minimise gov int doesn’t work (MEDC protectionism)
MNCs - too much power