《ch08 trade policies for the developing nations》.ppt

The rationale for import substitution arises from the developing countries’ perspective on trade. Import substitution involves extensive use of trade barriers to protect domestic industries from import competition. Import-substitution policies may lead to complete self-sufficiency. It may be costly to produce it domestically and cheaper to import it. The risks is lower, it is easier to protect, it can attract more FDI and improve employment rate. (2) Export led Growth It is an outward looking strategy of encouraging the development of industries in which the country enjoys comparative advantage, with heavy reliance on foreign nations as purchasers of the increased production of exportable goods. Differences between U.S and China’ Manufactured Goods /v_show/id_XMzgyMzY1NjY0.html The New Industrial Revolution Increasing Production and Economy Discuss Is Economic growth good for poor? Can all developing countries achieve Export – Led growth? Salvatore: International Economics, 10th Edition ? 2009 John Wiley Sons, Inc. Salvatore: International Economics, 10th Edition ? 2009 John Wiley Sons, Inc. Salvatore: International Economics, 10th Edition ? 2009 John Wiley Sons, Inc. Salvatore: International Economics, 10th Edition ? 2009 John Wiley Sons, Inc. Salvatore: International Economics, 10th Edition ? 2009 John Wiley Sons, Inc. International Economics Trade Policies for the Developing countries CHAPTER EIGHT 8 In this chapter: 8.1. Introduction 8.2. Developing-Nation Trade Characteristics 8.3. Call for a New International Economic Order 8.4. Stabilizing Commodity Prices 8.5. The OPEC Oil Cartel 8.6. Economic Growth Strategies 8.7. East Asia’s Economy 8.1. Introduction In general, advanced nations are characterized by relatively high levels of gross domestic product per capita, longer life expectancies, and higher levels of adult literacy from economic and social views. Some economists believe that conventional international trade theo