A strategic orientation will enable the firms proper adaptation to its environment. 3. Generally there are three kinds of approaches or research methods namely Qualitative, Quantitative and Mixed. As well as, firstly, it must be noted that export oriented industrialization is different in large countries and smaller countries. Export-Oriented Industrialization and why this approach to post-colonial industrial development tends to work better than ISI. Clothing and export diversification : still a route to growth for low-income countries ? 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. It can be a lucrative way for businesses to expand their operations and increase their profits. The industry can have a steady growth. Can The tpms sensors on a 2002 Ford Explorer can be activated using a magnet.. Helps improve economy 2. 4. For example, one can speak about such obstacles as import quotas or tariffs (Dickson 2013, p. 1991). Abstract: Purpose of this research paper is research export-oriented industrialization. The most vivid example of this transformation is Japan because it acquired leading roles in such industries as automobile manufacturing or electronics. This essay on Export-Oriented Industrialization and Its Principles was written and submitted by your fellow 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 Factory towns like Hershey had a reputation for providing workers with quality housing and access to needed resources. the hazards of these structural adjustment policies include economic instability (unemployment and inflation) and inequities free trade results in a more efficient use of resources and therefore greater production export oriented industrialization has resulted in higher rates of economic growth than import substitution policies The first is that export-led growth can create profit, allowing a country to balance their finances, as well as surpass their debts as long as the facilities and materials for the export exist. 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. 8. Exporting protects your business against fluctuations in the domestic business cycle, thereby protecting your revenue and employees. It continues to be adopted by many countries that attempt to participate in the global trade. , 2007).Strategic Orientation focuses on the way a firm adapts to and interacts with its external environments (Zhou and Li 2010). IvyPanda. Foreign aid helps facilitate many developmental programs in developing countries. However, like any business activity, exporting also has its own set of advantages and disadvantages that companies must carefully consider before entering into international trade. Just from $9/Page. 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. Enter the email address you signed up with and we'll email you a reset link. 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? subordinate short-term profits to long-term gains. Advantages Of Export Oriented Industrialization. What do the parents perceive as their role to the Day Care worker? In fact, in small countries have small area, small population and small markets and when they use export orientated strategy then can get larger scale economy profit. Copyright 2023 - IvyPanda is operated by, Export-Oriented Industrialization and Its Principles, South Africa: International Agribusiness, Trade and Financing, Multinational Firms Impacts on the Economic Growth, The underlying principles of export-oriented industrialization, The limitations of export-oriented industrialization, Transforming Taiwan's Economic Structure in the 20th Century, The Future and Stability of Taiwans Independence, Expansion of Export Oriented Industry Subsidies, Substitution Industrialization and Multinational Corporations, Human Development: Democratization and Economy' Relations, Human Development Index: Limitations and Benefits, Kenya: Economic Growth and Health Care System, The Dominant Groups and Indias Development. This process led to the development of new best practices, eventually leading to improved patient outcomes. This advantage would eventually lead to a stronger free-market economy where those with the most innovation could get rewarded for their creativity. 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. Academia.edu no longer supports Internet Explorer. In this paper export oriented industrialization will be introduced.. It shifted money away from the aristocracy to the average household. Still, economically advanced states were able to diversify their economies. With the best exchange rate possible you can save a significant amount of money for your business. Export oriented industrialization strategies. With artificial intelligence and machine learning taking over many of todays repetitive processes, this shift in our economy changed the way we think about productivity. 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. And are identified which export oriented strategy is better to successful economic growth. what makes muscle tissue different from other tissues? inventionjournals 404 views A ) Discuss the forms of restriction on international trade. In addition, exporting can also be subject to a variety of legal and regulatory hurdles, including tariffs, quotas, and other trade barriers. The disadvantage for an import substitution based industry, ISI, is although it achieves growth it does so through a greater period of time. The definition of Globalization according to Business dictionary means: The worldwide movement toward economic, financial, trade, and communications integration. Moreover, these nations had to rely on advanced technologies in order to retain comparative advantage. Hence the PPC will shift outward. 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). At present, the most eloquent example of export-oriented industrialization is China. In general, the countries with a preference for planning, regulated markets and public enterprises opted for import substitution, while countries which believed in the merits of market mechanism and private enterprise, concentrated upon the strategy of export- led growth. 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. And this strategy is a trade and economic policy which this strategy aiming industrialization process of a country. Factories made it easier to produce everything from scalpels to new laboratory equipment, making it possible for more people to become doctors, nurses, and caregivers. Similar strategies have been implemented in India. They realized that their heavy reliance on natural resource export was not sustainable and made them vulnerable to the international market. First of all, the emphasis on specific industries can lead to the decrease of diversification. What does this mean emulate what you respect in your friends? We often look at names like Jeff Bezos, Elon Musk, and Bill Gates and their combined wealth of about $400 billion and wonder how a few people can hold so much. 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 Limitless Market One advantage of exporting is that the market is limitless. And 98 percent of these exporters have fewer than 500 employees. Industrialization improved our medical care. For low- and high-income countries, however, export promotion does not have any significant impact on economic growth. ensure the integrity of our platform while keeping your private information safe. 5. 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. When electricity became available, then humanitys standard of living increased even further because of these efforts. Your research and development budget could work harder as you can change existing products to suit new markets. The technological advancement and change in the communication and transportation facilities has surged the international trade in the 20th century. It created the foundation for global warming and climate change. This can be particularly useful in times of economic downturn, as it can help to mitigate the impact of downturns in one particular market by relying on demand from other markets. Several advantages and disadvantages of industrialization are worth taking into consideration. That means the countries without industrialization hold themselves back because they sell the items needed to evolve their economies for short-term gains instead of long-term results. No Obligation to any Manufacturer: The export merchants may concentrate on products which offer them the greatest profit. If the purchasing power of local clients does not become strong, the industrialization of a less developed country may not be successful. View Essay - 8 23. 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. A myriad of economic benefits stems from this particular development. In my essay I will talk about different business strategies which companies can adopt in case of responding to issues of globalization. However, this policy may have significant limitations. That led to the creation of roads that could support higher traffic levels. This paper is aimed at examining the advantages and disadvantages of export-oriented industrialization. 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. 1. develop new promotional material. Reduction in the availability of other protective food and high value crops. 20. The technological advances that led to our modern approach to medicine came about because of industrialization. It focuses in some senses on what the mainstream literature may be seen to neglect, but in doing so considers that from a legal/institutional perspective one appreciates that the relationship between trade liberalization and labour law is constructed, shaped, redirected by state action. However, the first effort at large scale production got underway when the Tata Iron and Steel Company TISCO was set up at Jamshedpur in 1907. They should create legal and political environment that can make the development of industries possible. 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 . Your privacy is extremely important to us. Import substitution, on the other hand, is the opposite. When domestic demands were not enough to help optimize production levels, multinational firms began forming. (2020, May 23). 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. Higher investment increases a country's productive capacity which then increases the potential for exports. In turn, they can start their own businesses that can also become profitable. Although that means were not significantly reducing animal populations to meet our fueling needs, it doesnt shift us away from a finite resource. 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. Rameshan, P 2008, WTO, India, and Emerging Areas of Trade: Challenges and Strategies, Excel Books India, Delhi. Export-Oriented Industrialization and Its Principles. At the beginning, the manufacturers from Taiwan focused on the export of textiles. Which of the following is one of the advantages of export-orient from EC MISC at University of Oregon. This strategy seeks to find a niche in the world economy . Importing goods brings new and exciting products to the local economy and makes it possible to build new products locally. The second, much more debatable reason is that increased export growth can trigger . When an economy industrializes, things are made more rapidly and in higher quantity. 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 We still experience the fallout from industrialization in our global politics. If you're only doing business in this country, you may be limiting the total potential profits you could earn on opportunities to expand your business worldwide. Diversifying The Business Diversifying the business can come with risks. Exporting offers plenty of benefits and opportunities, including: Access to more consumers and businesses. 4. The quality and safety of the foods we eat from these processes are questionable at times, especially when GMOs, herbicides, and pesticides enter into the discussion. When we review the results from our efforts at industrialization, it is clear to see that our world would be a very different place without this innovation. professional specifically for you? For example, one can mention sportswear, knitted garments, cotton, sugar cane, wheat, rice, and many others (Rameshan, 2008, p. 67). 1. The agricultural industry relies on automation, longer shelf life, and other interventions that allow for large-scale farming instead of homesteading. One major advantage of exporting is that it allows businesses to tap into new markets and reach a larger customer base. On the other hand, growth and development from export oriented industries, EOI, has greater results and is so much faster than import substituting industries. Information and translations of export-oriented industrialization in the most comprehensive dictionary definitions resource on the web. survey. This is the main thesis that can be put forward. Export-led growth is an economic strategy used by some developing countries. Overall, one can argue that at present, some of Asian countries such as Singapore have reached the standard of living set in Europe or the United States. International trade open up the world potential market to increase producer sales quantity and increase competition on foreign country. Imagine the difference between manually cleaning a rug versus using a vacuum cleaner. Export-oriented industrialization (EOI) is the industrialization process governed by economic policies that are aimed towards enhancing the export sector of a country. 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). 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