Export-Oriented Industrialization (EOI): Arguments for and Against What Have Been Experienced of Developing Countries With Regard to EOI 1. 2. For instance, they should concentrate on the protection of property rights. This is all the more so when direct exporting is utilized. 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. Instead of mixing foods by hand, we use small appliances. Some companies were even building towns to give homes to families in exchange for their labor. View Essay - 8 23. Meaning of export-oriented industrialization. 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. There is saving of time and labor. industrialization of developing countries occurred according to two broad types of strategies. These are the main benefits of export-oriented industrialization. Now we use fossil fuels to produce the goods and services we need through our factories. Once societies began to focus on manufacturing, this developed allowed families to begin training for jobs that could pay them better. in different nations. The technological advances that led to our modern approach to medicine came about because of industrialization. The primary goal of the implemented substitution industrialization theory is to protect, strengthen, and grow local industries using a variety of tactics, including tariffs, import quotas, and. No one at any other time in history outside of a monarchy controlled that much of the economy. We demonstrate that spatial autocorrelation dominates . Not all of the items in your country will be easy to export. Let's take a closer look. Export-led growth has a lot to do with self-sufficiency. Exporting protects your business against fluctuations in the domestic business cycle, thereby protecting your revenue and employees. 5. We have access to almost every product we use today because of the work that previous generations put into new ideas, factories, and goods. Extending to a global scale One of the primary benefits of exporting is access to a global market of buyers. Oceans have a more acidic pH level. , 2007).Strategic Orientation focuses on the way a firm adapts to and interacts with its external environments (Zhou and Li 2010). 3. This disadvantage has led to changes in our soil composition, water quality, and the air that we breathe. subordinate short-term profits to long-term gains. This situation could be observed in Taiwan, Singapore, and India (Hamilton 1996, p. 1). Apart from that, such states can become extremely dependent on the trade policies of other states. These methods are used to gather data and resolve issues that emerge during the process of data gathering. The benefits of exporting are not only related to the business and company growth, but also it assists you in getting aid from the government as well. A nation can be quickly gain expertise in those areas that were previously dominated by other countries such as the United States (Bair 2009, p. 29). Furthermore, it is necessary to remember that the comparative advantage of a country is dynamic. Which of the following is one of the advantages of export-oriented Exporting can also help businesses to spread the fixed costs of production over a larger number of units, which can also help to increase profitability. Industrialization created the surge in automation that we experience today. This issue should be taken into account by legislators who should work on the development of social policies. Besides, the success of the export strategy is changing from country to country. The introduction of mass production changed how everyone could access goods or services. Export-led growth is an economic strategy used by some developing countries. Therefore, it is not possible to argue that export-oriented industrialization inevitably lead to inequality within a society. Employees were expected to put in long shifts, often working 12-hour days with only Sunday off to spend time with their families. This essay on Export-Oriented Industrialization and Its Principles was written and submitted by your fellow Industrialization improved our medical care. Being, This paper investigates some studies about the effect of industrial revoluton. It allows us to become more productive. Here's a quick summary: Advantages of exporting There are multiple advantages of exporting for businesses of all sizes. Philippines. Research report submitted to the APEC . Apart from that, one should bear in mind that export-oriented investment brings foreign direct investment to a country (Chan & Clark, 2013). There werent any regulations in place to protect employees, so many people worked with equipment that didnt have safety features. May 23, 2020. https://ivypanda.com/essays/export-oriented-industrialization-and-its-principles/. Therefore, export-oriented industrialization is better in smaller country. 7. Export-Oriented Industrialization and why this approach to post-colonial industrial development tends to work better than ISI. You could own property without needing to be a farmer or a royal. Exporting refers to the sale of goods and services to foreign countries. This advantage would eventually lead to a stronger free-market economy where those with the most innovation could get rewarded for their creativity. May 23, 2020. https://ivypanda.com/essays/export-oriented-industrialization-and-its-principles/. Nevertheless, policy-makers and economists should remember that the implementation of this strategy depends on such factors accessibility of market, the level of corruption, skills of local workers, and willingness of entrepreneurs to invest into new technologies. Disadvantages of direct exporting are as follows: 1. What are the advantages of export oriented industrialization? The disadvantage for an import substitution based industry, ISI, is although it achieves growth it does so through a greater period of time. 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. Export-oriented industrialization is related to the theory of comparative advantage. We dont walk to work because we can drive there. People even made margarine from whale oil in the early days of industrialization. The work was also quite dangerous. Factory towns like Hershey had a reputation for providing workers with quality housing and access to needed resources. 1. Labor is the most expensive part of the manufacturing process for most industries. import substitution industrialization (ISI), development strategy focusing on promoting domestic production of previously imported goods to foster industrialization. Industrialization altered the political landscape of the planet. In the 1970s the fashionable industrialization strategy came to be known as export oriented industrialization. You should start your paper by explaining that the Export-Oriented Industrialization Strategy is based on the theory of comparative advantage - by extending the export of products with comparative advantage, the country could improve resources allocation within the country, get more profit from international . Industrialization has resulted in a considerable rise in the standard of living of the people. We will write a custom Essay on Export-Oriented Industrialization and Its Principles specifically for you for only $16.05 $11/page. Published on 26 Sep 2017 A nation pursuing export-led growth seeks to expand its economy by producing goods for sale overseas. professional specifically for you? It is widely accepted that export oriented economies are more effective when the external demand is high. Nevertheless, governmental officials cannot always predict emerging trends the world economy (Dickson 2013, p. 1991). 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). The most eloquent example is Nigeria which exports oil and gas; however, other areas of this economy remain underdeveloped (Campbell 2013, p. 15). 7. Industrialization changed our world for the better in many ways. Effect o. These could help in improving those countries position in the world. 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. This discussion suggests that export-oriented industrialization has been a driving force that improved the economic performance of many less developed countries. 18 Big Advantages and Disadvantages of Group Decision Making, 16 Key Advantages and Disadvantages of Cluster Sampling, 18 Major Advantages and Disadvantages of the Payback Period, 20 Advantages and Disadvantages of Leasing a Car, 19 Advantages and Disadvantages of Debt Financing, 24 Key Advantages and Disadvantages of a C Corporation, 16 Biggest Advantages and Disadvantages of Mediation, 18 Advantages and Disadvantages of a Gated Community, 17 Big Advantages and Disadvantages of Focus Groups, 17 Key Advantages and Disadvantages of Corporate Bonds, 19 Major Advantages and Disadvantages of Annuities, 17 Biggest Advantages and Disadvantages of Advertising. You can use them for inspiration, an insight into a particular topic, a handy source of reference, or even just as a template of a certain type of paper. A market-based institutional framework is essential for attracting FDI to a country (World Bank, 2002). It is necessary to focus on less developed countries which implemented this policy after the end of World War II. With the best exchange rate possible you can save a significant amount of money for your business. Diagnostic equipment that we often take for granted today, such as MRI and CAT scans, wouldnt be possible without this evolution. Children were expected to work the same 12-hour days that adults put in while on the job, reducing their opportunities for schooling. Higher investment increases a country's productive capacity which then increases the potential for exports. 23 May. So, the next step was major section III, Research Methodology. This is one of the main arguments that can be put forward. What are the advantages and disadvantages of export oriented industrialization? It is an effort by countries to become self-sufficient and lower their dependence. INTERNATIONAL JOURNAL OF, Globalization in Ecuador Industrialization brought us the current import-export market. The export-oriented economy of such countries cannot function effectively provided that other countries adopt protectionist policies. The researchers look for the most crucial data which is inevitable for the research. Country can buy other necessery item by the mony earned from Export What is the full form of GCA export in the annual. Your privacy is extremely important to us. 8. Imagine the difference between manually cleaning a rug versus using a vacuum cleaner. Conclusion Export-oriented model does not necessarily bring about high productivity. No Obligation to any Manufacturer: The export merchants may concentrate on products which offer them the greatest profit. They paid attention to both domestic and foreign markets since the purchasing power of local clients was also high. 5 This has left something of a policy gap, though it is a gap that is rapidly being filled by a new literature on exporting which in contrast to the established literature is microeconomic and microeconometric. Export-Oriented Industrialization and Its Principles. During the initial days of industrialization, people like John Rockefeller and Andrew Carnegie held that much money by themselves. Child labor was an essential component of industrialization. However, that could be time consuming and more difficult to obtain than domestic data. The industry can have a steady growth. You are free to use it for research and reference purposes in order to write your own paper; however, you This economic policy has been described as one of the factors that contributed to the development of many less advanced countries that were able to raise their standards of living. Get your 100% original paper on any topic done in as little as 3 hours Learn More The developed countries adopted a different approach to the development of economy. Each new invention or best practice that came about because of industrialization led to more jobs for the global economy. In mets giveaways august 2021 Your research and development budget could work harder as you can change existing products to suit new markets. It was in many ways significant in the early development experiences of a number of the advanced industrial countries. As well as, firstly, it must be noted that export oriented industrialization is different in large countries and smaller countries. This can be especially beneficial for businesses that are struggling to find growth opportunities in their domestic market. "Export-Oriented Industrialization and Its Principles." Growth strategy is a strategy aimed at winning greater market share, even at the expense of short-term profit. However, there are also several disadvantages to exporting that businesses must consider. They realized that their heavy reliance on natural resource export was not sustainable and made them vulnerable to the international market. These examples suggest that policy-makers should understand the drawbacks of export-oriented industrialization. If you were sick or got injured, then youd probably get fired. Pre-industrial societies have extended connections because several generations likely remained in the same location. 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. This process uses to describe the changes in society and in the world economy, by creating a linkage and increasing exchange between individuals, organizations or nations in cultural perspective, economics on global scale (Globalization 101, n.d.). At that time, these countries were profoundly affected by poverty and increasing unemployment rates (Hamilton 1996, p. 1). Export-oriented industrialization (EOI) is the industrialization process governed by economic policies that are aimed towards enhancing the export sector of a country. 5. However, within the last two decades, India began to play an important role in information technology industry (Rameshan, 2008, p. 67). When the cities became crowded with people moving away from their farms on a chance to earn a better income, then it led to living conditions that werent better than the working conditions in the factories. . 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 world started to see that the balance of trade was shifting to the producer, increasing the wealth of businesses, and adding tax revenues to society. Question: What are the advantages and disadvantages of export oriented industrialization? We made things because of their usefulness, which limited our innovation. The database is updated daily, so anyone can easily find a relevant essay example. In addition, I will use other research papers with the same topic to find what experts say about this topic. Moreover, it can be possible if the barriers to free trade are eliminated. This phenomenon is often described as a resource curse which means that the exportation of resources is associated with the decline of other industries. May 23, 2020. https://ivypanda.com/essays/export-oriented-industrialization-and-its-principles/. reliance on external markets for manufactured goods as the main impetus towards a country's 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. For such a thing, they are offering several additional benefits as well. This leads to political and social uneasiness and financial unreliability that will restrain growth. 1996. This may require additional staff and therefore lead to an expansion. 4. Industrialization created more income inequality for the top 0.1%. 2. 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.. 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