A ) Discuss the forms of restriction on international trade. Poor Working Conditions Every industry is profit-driven; many companies look to maximize their profit by increasing the levels of production. In addition, I will use other research papers with the same topic to find what experts say about this topic. Chan, S & Clark, C 2013, Flexibility, Foresight and Fortuna in Taiwans Development, Routledge, New York. Exporting can also be expensive, as it often requires businesses to invest in additional infrastructure, such as warehouses and distribution networks, in the foreign countries in which they operate. Abstract: Purpose of this research paper is research export-oriented industrialization. These examples suggest that policy-makers should understand the drawbacks of export-oriented industrialization. It is argued that the relationship between trade liberalization and labour law must be understood as constantly reconstructed across governance levels and with a view to forms of distributive justice beyond national borders. If the purchasing power of local clients does not become strong, the industrialization of a less developed country may not be successful. The second, much more debatable reason is that increased export growth can trigger . What are the advantages of export oriented industrialization? Unless action gets taken to curb this issue, we will one day reach a tipping point where a recovery might not be possible. , 2007).Strategic Orientation focuses on the way a firm adapts to and interacts with its external environments (Zhou and Li 2010). Export-Oriented Industrialization (EOI): Arguments For and Against What Have . Therefore, export-oriented industrialization is better in smaller country. Export-oriented industrialization was particularly characteristic of the development of the national economies of the Asian Tigers: Hong Kong, South Korea, Taiwan, and Singapore in the post-World War II period. The transaction may include the import, export, financial capital, goods of services, and the financial transfers of the funds. Import substitution industrialization (ISI) was pursued mainly from the 1930s through the 1960s in Latin Americaparticularly in Brazil, Argentina, and Mexicoand in some parts of Asia and Africa. This means that fluctuations in currencies, which are out of your control, can end up costing you sales. The technological advances that led to our modern approach to medicine came about because of industrialization. Industrialization changed our world for the better in many ways. Its reducing biodiversity while our economies grow. May 23, 2020. https://ivypanda.com/essays/export-oriented-industrialization-and-its-principles/. Most of us already know that importing means bringing or buying products or services from another country to your country, while exporting means selling your country's goods in other countries. "export-oriented industrialization," a development policy often promoted for a wide range of societies undertaking industrialization. 3. In many cases, companies that are based in less developed countries can achieve leading positions in the market because their production is more cost-efficient (Dickson 2013, p. 1991). 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). However, this policy may have significant limitations. Enter the email address you signed up with and we'll email you a reset link. Other criticisms include that export oriented industrialization has limited success if the economy is experiencing a decline in its terms of trade, where prices for its exports are rising at a slower rate than that of its imports. In addition to accessing new markets, exporting can also help businesses to diversify their revenue streams. Effect o. Anyone could make a name for themselves because of industrialization. Also, in small countries is the amount of the unemployed labor force, the surplus products and disused resources which is comparatively small than large countries and they only need to achieve a small export scale to solve these problems. An export-oriented industrial policy is justified in relation to manufacturing products with a high degree of processing, it stimulates the development of innovations and the creation of goods that can compete with goods produced in other states. Thus, one can say that the development of these countries had similar patterns. Fewer than 40 countries have gone through a modern economic revolution to fully incorporate these technologies, giving those that have a massive advantage over the developing world. These are the main benefits of export-oriented industrialization. This situation could be observed in Europe and the United States. This benefit promptly led to the development of new channels and shipping methods that could carry more products and people from one place to another. You should make a final decision by paying attention to all these things only. This paper is aimed at examining the advantages and disadvantages of export-oriented industrialization. 3. The Advantages and Disadvantages of Industrialization. However, international aid can also be a hindrance. Not only must the development of trade law be appreciated within its historical context to understand its intimate relationship with labour regulation in the North and labour commodification in the South. Moreover, it is critical to look at the experience of western countries that took a different approach. Communication processes improved because of industrialization, eventually leading us to the telephone and fiberoptic cables. These products enjoyed significant demand in the foreign market. International trade refers to a country trade goods and services to another country. Use this information strictly at your own risk. Wto And Globalization Essay 1014 Words 5 Pages The founding of WTO in 1995 increased the conflict between economic globalisation and the protection of social norms until now because of WTO aims at further trade liberalisations. "Export-Oriented Industrialization and Its Principles." On the other hand, growth and development from export oriented industries, EOI, has greater results and is so much faster than import substituting industries. Export-led growth implies opening domestic markets to foreign competition in . On the other hand, growth and development from export oriented industries, EOI, has greater results and is so much faster than import substituting industries. The development of such nations as China or India can be possible provided that they have access to foreign markets (Dickson 2013). However, it is important for businesses to carefully consider the advantages and disadvantages of exporting before entering into international trade. If the value of the foreign currency in which a business is paid declines significantly, it can eat into the profits that the business generates from its exports. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. India has always followed a development model for its International trade since the liberalization in 1990s. I choose the topic of international trade. International trade open up the world potential market to increase producer sales quantity and increase competition on foreign country. Labor is the most expensive part of the manufacturing process for most industries. If the value of the foreign currency in which a business is paid declines significantly, it can eat into the profits that the business generates from its exports. Export-Oriented Industrialization (EOI): Arguments For and Against What Have Been Experienced of Developing Countries With Regard to EOI Jan. 16, 2013 12 likes 24,252 views Download Now Download to read offline Economy & Finance Dr.Choen Krainara Follow Consultant Advertisement Recommended Too much dependence on middlemen: The main drawbacks of indirect exporting is too much dependence of the exporter producer on the middlemen operating in the channel. Industrialization brought people more money and better access to goods and services, but it also increased the amount of risk that people faced. Advantages and Disadvantages of Importing And Exporting. Export oriented industrialization strategies. We made things because of their usefulness, which limited our innovation. The increase in vehicular traffic, launching of space ships and rockets by competing nations, the incessant working . Advantages of exporting. Khatabook Blogs are meant purely for educational discussion of financial products and services. For example, one can mention sportswear, knitted garments, cotton, sugar cane, wheat, rice, and many others (Rameshan, 2008, p. 67). apart from these, international trade will create job opportunity and hence reduced unemployment rate as well as positive balance of payment. professional specifically for you? Moreover, these nations had to rely on advanced technologies in order to retain comparative advantage. It identified what is advantages of export-oriented industrialization and what problems can it create for the development of economy. These are the main aspects that can be identified. Being, This paper investigates some studies about the effect of industrial revoluton. People who are importing goods and finished products from other countries may have a chance to survive. It was a change that led to mass production of numerous items, lower costs and improved availability to the average family. After World War II, this approach to economic development has been adopted by different countries. survey. This is true of many economies aiming to exploit their comparative advantage in primary commodities as they have a . When that many people lived close together in unsanitary conditions, it was not unusual for diseases to start spreading rapidly. At present, the most eloquent example of export-oriented industrialization is China. Some countries adopted the approach of import substitution in which they try to decrease their dependency on other nations and protect and foster domestic small companies. 2. The services sector in India has shown a tremendous growth which can be attributed to ever increasing IT sector in India. The working conditions declined during industrialization. Importing goods brings new and exciting products to the local economy and makes it possible to build new products locally. It contains thousands of paper examples on a wide variety of topics, all donated by helpful students. Copyright 2022 IPL.org All rights reserved. Since there was little medical care available during the early years of industrialization, it was not unusual for most families to lose multiple members in their quest to make a better life. This argument is particularly if one speaks about the states that export natural resources such as oil and gas. This problem has been solved! What are the advantages and disadvantages of export oriented industrialization? They realized that their heavy reliance on natural resource export was not sustainable and made them vulnerable to the international market. Countries could expand their import and export markets for the goods getting made. We have plastics pollution everywhere, with microplastics entering the human food chain because animals consume these small items. 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. Prior results do not guarantee a similar outcome. Being competitive in the domestic market helps companies to acquire some strategies that can help them in the international arena. ensure the integrity of our platform while keeping your private information safe. This is the main prerequisite for a persons ability to climb the social ladder and become competitive in the labor market. Domestic Resources Get A Bad Hit Some companies are importing competitions or substitutes for domestic products. Importance. In this paper export oriented industrialization will be introduced.. As well as, several disadvantages have in this strategy. The term Research Methodology refers to a set of procedures, methods & techniques that are put together by the researchers to obtain a solution to the problems they confront during the collection of data. They usually have long-standing customers for whom they source products on a regular basis. We will write a custom Essay on Export-Oriented Industrialization and Its Principles specifically for you for only $16.05 $11/page. Clothing and export diversification : still a route to growth for low-income countries ? Indeed, the researcher gathered pertinent information from secondary sources; however, the primary sources of data were needed to draw a logical conclusion of the research at hand. Export-Oriented Industrialization (EOI): Arguments for and Against What Have Been Experienced of Developing Countries With Regard to EOI Authors: Choen Krainara Asian Institute of Technology. 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