UNIT 4 (5. EOI) Flashcards
What is Export-oriented Industrialization (EOI) and why did countries adopt this strategy?
Export-oriented Industrialization (EOI) is a strategy for economic development that prioritizes the growth of a country’s manufacturing and industrial sectors to create goods and services for export to global markets. Countries adopted this strategy as a response to the limitations and challenges of Import Substitution Industrialization (ISI), recognizing the need for a more outward-looking approach that emphasized global competitiveness, efficiency, and innovation.
Which countries are known for their successful implementation of Export-oriented Industrialization (EOI)?
South Korea, Hong Kong, Taiwan, and Singapore, also known as the Four Asian Tigers, are among the most representative examples of successful implementation of Export-oriented Industrialization (EOI). These countries focused on foreign technology acquisition to compete in industries like auto manufacturing and electronics.
What are some of the obstacles and critiques associated with Export-oriented Industrialization (EOI)?
Some obstacles and critiques associated with Export-oriented Industrialization (EOI) include: government intervention shaping EOI strategy, inequality favoring large firms and skilled workers, negative social and environmental externalities such as pollution and labor exploitation, vulnerability to a decline in demand for exported goods, and the potential deindustrialization of the domestic economy.
