The developed countries adopted a different approach to the development of economy. Which of the following is one of the advantages of export-oriented 3.Exports will lead to the loss of core technologies Letecia Hill Motivated Commercial Specialis Upvoted by Felicity Ricardo Gerardo Otero, ed. This is IvyPanda's free database of academic paper samples. In this case, much attention should be paid to manufacturing sector that cannot become competitive. 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). India has always followed a development model for its International trade since the liberalization in 1990s. 1 Export. Economies of scale Another instance of export benefits is that of economies of scale. The researchers look for the most crucial data which is inevitable for the research. 4. He sacrificed almost everything in his pursuit of vulcanization. Any company, before the allocation of resources for a project in the field of export must carefully evaluate the pros and cons of exporting to new markets. Apart from that, one should bear in mind that export-oriented investment brings foreign direct investment to a country (Chan & Clark, 2013). A market-based institutional framework is essential for attracting FDI to a country (World Bank, 2002). We dont walk to work because we can drive there. Defined simply, export-oriented Industrialization (EOI) often termed as export led industrialization (ELI) is a policy designed for the purpose of speeding up the industrialization process of a country through exporting goods for which the nation has a comparative advantage. Still, economically advanced states were able to diversify their economies. Prior results do not guarantee a similar outcome. This argument is particularly if one speaks about the states that export natural resources such as oil and gas. Export-oriented industrialization ( EOI) sometimes called export substitution industrialization ( ESI ), export led industrialization ( ELI) or export-led growth is a trade and economic policy aiming to speed up the industrialization process of a country by exporting goods for which the nation has a comparative advantage. 13 Bruton, "A reconsideration of import substitution",903 14 Werner Baer, "Import Substitution and Industrialization in Latin Amercia: Experiences and Interpretations." People who are importing goods and finished products from other countries may have a chance to survive. What is the moral lesson of at wars end by rony diaz? When domestic demands were not enough to help optimize production levels, multinational firms began forming. Limitless Market One advantage of exporting is that the market is limitless. When electricity became available, then humanitys standard of living increased even further because of these efforts. The transaction may include the import, export, financial capital, goods of services, and the financial transfers of the funds. Instead of having regionally-based care, the improvements to communication networks allowed researchers to share their findings in real-time with their colleagues. Export-Oriented Industrialisation and Dependent Development: the Experience of Singapore Cheah Hock Beng Introduction Development which relies in varying degrees upon the export of manufactured goods is not a new phenomenon. Furthermore, in this way, the poor countries can gain financial resources that are needed for the improvement of local infrastructure. 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. While China benefited from this strategy, Thailand, Indonesia faced a lot of difficulties. But in large countries is the number of unemployed people and surplus products huge and a large increase in export cannot solve these problems. This disadvantage has led to changes in our soil composition, water quality, and the air that we breathe. As well as, several disadvantages have in this strategy. This is the main risk that entrepreneurs should be aware of. There are many different approaches to development in which countries over the years adopted to further develop and grow their economy. When people made products before industrialization, the labor required to create something meant that each item required a specific purpose. Allocation of means of production will be done in a more efficient way. They realized that their heavy reliance on natural resource export was not sustainable and made them vulnerable to the international market. However, it does not include unhindered movement of labor and, as suggested by some economists, may hurt smaller or fragile economies if applied indiscriminately. Export-Oriented Industrialization and Its Principles. Large slums began forming in many of the communities where entire families were sometimes living in studio apartments. Why would a business export? Factories that had higher quotas to meet needed new workers on the floor working to produce goods. Moreover, in many cases, the development of an industry is affected by the governmental policies. In the long-term, such a state can become very vulnerable to the changes in external environment. Overall, exporting can be a valuable way for businesses to access new markets and increase their profits. That led to the creation of roads that could support higher traffic levels. However, these short-comings do not undermine the positive role that was played by export-oriented architecture. However, they could gain comparative over others because local companies had access to relatively skilled and cheap labor force (Hamilton 1996, p. 1). Investopedia define Globalization as the tendency of investment funds and businesses to move beyond domestic and national markets to other markets around the globe, thereby, If all of these criteria are met, a candidate is legally, While considering there were many helpful, positive effects to industrialization, in the end, the negative out-weighs the positive. Globalization activity doesn't only reduce trade boundary but it lot more effects like one country come closer to the economy of other country, it help in mixture of culture, it helps in transfe Industrialization brought us the current import-export market. This economic policy has been described as one of the factors that . For such a thing, they are offering several additional benefits as well. Many economists have also been commenting on the recent export growth slowdown in India. 5. It created the foundation for global warming and climate change. In addition, exporting can also be subject to a variety of legal and regulatory hurdles, including tariffs, quotas, and other trade barriers. It is up to us to clean up the pollution that comes about as a side effect to these efforts. Disadvantages The disadvantages of Industrialization are discussed below: The immediate result is in the gradual disappearance of many natural resources, the pollution of land, water and air.. July 3, 2022 gr oe These challenges can include: management focus. To browse Academia.edu and the wider internet faster and more securely, please take a few seconds toupgrade your browser. So, the next step was major section III, Research Methodology. Also the goods produced by Indian manufacturer are being exported to neighbouring countries like Bangladesh; Srilanka, Nepal has made India to focus in Asian countries for their trade. Domestic Resources Get A Bad Hit Some companies are importing competitions or substitutes for domestic products. We demonstrate that spatial autocorrelation dominates . Philippines. Research report submitted to the APEC . "export-oriented industrialization," a development policy often promoted for a wide range of societies undertaking industrialization. The increase in vehicular traffic, launching of space ships and rockets by competing nations, the incessant working . It means a person can make wealth with a decent job as an employee and maintain their living standard. The establishment of export processing zones is a fairly recent phenomenon, in a way being an extension of the industrial estate. International trade open up the world potential market to increase producer sales quantity and increase competition on foreign country. Bair, J 2009, Frontiers of Commodity Chain Research, Stanford University Press, Palo Alto. These are the main issues that can be taken into account. By exporting their products to foreign countries, businesses can access new consumers and potentially increase their sales and profits. At the beginning, the manufacturers from Taiwan focused on the export of textiles. 1. 1. Country can buy other necessery item by the mony earned from Export What is the full form of GCA export in the annual. The economic development of this country is primarily dependent on the foreign demand for its products and labor-intensive production. inventionjournals 404 views Here's a quick summary: Advantages of exporting There are multiple advantages of exporting for businesses of all sizes. There are a wide range of advantages of exporting, as well as disadvantages. At that time, these countries were profoundly affected by poverty and increasing unemployment rates (Hamilton 1996, p. 1). 7. Farmers who focused on monoculture and people with individual skills were the only specialists in the pre-industrialization economy. IvyPanda. This essay on Export-Oriented Industrialization and Its Principles was written and submitted by your fellow Moreover, the examples that have been discussed suggest that less developed country often move to the production of advanced technologies. , 2007).Strategic Orientation focuses on the way a firm adapts to and interacts with its external environments (Zhou and Li 2010). Advantages Disadvantages insufficient knowledge of market and culture no or very few extra staff required lower profit margins agent knows and has access to the market and distribution channels dependence on commitment of partner more complete market coverage possible no direct customer contact What are the disadvantages of indirect exporting explain in your own words? IvyPanda. Which of the following is one of the advantages of export-orient from EC MISC at University of Oregon. While there is no universally agreed definition of globalization, economists typically use the term to refer to international integration in commodity, capital and labour markets. However, there are also several disadvantages to exporting that businesses must consider. These methods are used to gather data and resolve issues that emerge during the process of data gathering. however, it might bring negative effects to a country as well, therefore, government play an important role in implementing trade restriction on imported goods in order to prevent imported goods destroy the domestic market or at certain extend, monopolize the market. Industrialization changed our concept of work. What are the advantages of export oriented industrialization? Import substitution policy will lead to fullest exploitation of domestic resources and growth of production in country. 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. It can be a lucrative way for businesses to expand their operations and increase their profits. This is true of many economies aiming to exploit their comparative advantage in primary commodities as they have a . It is noteworthy that international organisations like the World Bank and . Being, This paper investigates some studies about the effect of industrial revoluton. If the purchasing power of local clients does not become strong, the industrialization of a less developed country may not be successful. Poor Working Conditions Every industry is profit-driven; many companies look to maximize their profit by increasing the levels of production. You could significantly expand your markets, leaving you less dependent on any single one. However, after the financial crisis the changes in international and domestic environments did not change the nature and trends of globalization, only temporarily slowed the pace of this process. There are fewer farmers operating today than ever before in our planets history because of the ways that industrialization changed our approach to growing food. Countries like China, japan and Taiwan has improved their efficiency in production and are able to reduce the price of the product, and India being country with huge consumer base and high Demand has become their prime market. To achieve such an objective, all companies are regularly putting efforts and work hard by which they can make lots of money. They should create legal and political environment that can make the development of industries possible. However, it is important for businesses to carefully consider the advantages and disadvantages of exporting before entering into international trade. 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. Enter the email address you signed up with and we'll email you a reset link. This is a big advantage of exporting, which can save your business. Although that means were not significantly reducing animal populations to meet our fueling needs, it doesnt shift us away from a finite resource. It identified what is advantages of export-oriented industrialization and what problems can it create for the development of economy. 9. There werent any regulations in place to protect employees, so many people worked with equipment that didnt have safety features. A strategic orientation will enable the firms proper adaptation to its environment. 7. It allowed people to step outside of the family business to try something new. May 23, 2020. https://ivypanda.com/essays/export-oriented-industrialization-and-its-principles/. Industrialization brought us the current import-export market. A myriad of economic benefits stems from this particular development. When an economy industrializes, things are made more rapidly and in higher quantity. When the incomes of workers rise, then the markets for different consumer goods and services expands. New manufacturing equipment required additional employment opportunities in each community. And 98 percent of these exporters have fewer than 500 employees. 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. So naturally the overall output of growth will rise. As well as, firstly, it must be noted that export oriented industrialization is different in large countries and smaller countries. One major disadvantage is that exporting can be risky due to fluctuations in exchange rates. 1. Globalization implies the opening of local and nationalistic perspectives to a broader outlook of an interconnected and interdependent world with free transfer of capital, goods, and services across national frontiers. The carbon levels before the 19th century were under 300 parts per million. On the other hand, growth and development from export oriented industries, EOI, has greater results and is so much faster than import substituting industries. survey. in different nations. First of all I would like to define all the terms that will appear in my essay. Wang Bo Ren(2006) argued that the export-oriented industrialization model need some prerequisites: some of the domestic industrial sector has already high level of technology and production management experience, also the adequate management personnel and skilled workforce. Some companies were even building towns to give homes to families in exchange for their labor. Employees were expected to put in long shifts, often working 12-hour days with only Sunday off to spend time with their families. Sorry, preview is currently unavailable. Whaling became an industry because we needed to harvest the oil from these animals to power our lamps and produce consumer goods. Factory towns like Hershey had a reputation for providing workers with quality housing and access to needed resources. 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. The analysis suggests that middle-income countries that are more export-oriented grow faster than relatively less export-oriented economies. List of the Advantages of Industrialization 1. Who makes the plaid blue coat Jesse stone wears in Sea Change? First of all, the emphasis on specific industries can lead to the decrease of diversification. It is a term usually applied to those THIRD WORLD countries which have attempted to find niches in the world market where advantages of low labour costs may make their goods cheaper than those produced in industrial countries. Industrialization created the surge in automation that we experience today. Additionally, this strategy eventually leads to the rising income level of people who can improve the quality of their lives. IvyPanda. This essay aims to analyse advantages and disadvantages of the application of ISI through an infant industry theory, focusing on how a complementary Export Oriented policy helps to avoid the main unwanted outcomes connected to such a policy, considering the successful development in China of an ISI policy Conclusion If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda. Even index providers cannot agree on precisely what constitutes an emerging mar-ket. This outcome didnt always happen. 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