Anyone considering using the services of an Oracle support expert should independently investigate their credentials and experience, and not rely on advertisements and self-proclaimed expertise. 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. During the initial days of industrialization, people like John Rockefeller and Andrew Carnegie held that much money by themselves. The advantages and the disadvantages of this strategy will be stated. By . For example, one can mention sportswear, knitted garments, cotton, sugar cane, wheat, rice, and many others (Rameshan, 2008, p. 67). Question: What are the advantages and disadvantages of export oriented industrialization? List of the Advantages of Industrialization 1. In addition, foreign investors are concerned with local institutions, and with informal, often less evident aspects of the institutional framework. The industry can have a steady growth. Greater production can lead to larger economies of scale and better margins. These are the main premises of this approach. 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. Export-oriented industrialization is related to the theory of comparative advantage. 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? Globalization is the global evolution toward economic, financial, trade, and communications integration which implies the opening of regional and nationalistic perspectives to a wide attitude of an interconnected and interdependent world with free transfer of capital, goods, and services across domestic frontiers. Can The tpms sensors on a 2002 Ford Explorer can be activated using a magnet.. 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. 18 Advantages and Disadvantages of Industrialization. Generally there are three kinds of approaches or research methods namely Qualitative, Quantitative and Mixed. This strategy can increase the GDP of these countries; however, it does not always intensify upward social mobility. Production can be increased in many cases to reduce unit costs and lead to increased use of existing capacity. 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.). Retrieved from https://ivypanda.com/essays/export-oriented-industrialization-and-its-principles/. The bitter truth is that compliances are getting tougher with time for exporters. The Great Depression in the 1930s severely hurt Latin America's export market. Political Economy of Import Substitution Industrialization in Latin America" in 1968, thus the author will refer to Villela who evaluated the long-term effects of ISI. apart from these, international trade will create job opportunity and hence reduced unemployment rate as well as positive balance of payment. These could help in improving those countries position in the world. Many economists have also been commenting on the recent export growth slowdown in India. Market research, marketing campaigns and initiatives, administrative costs, travel costs for employees - these costs can add up significantly. 1. For such a thing, they are offering several additional benefits as well. export oriented industrialization advantages and disadvantages. It means a person can make wealth with a decent job as an employee and maintain their living standard. This phenomenon is often described as a resource curse which means that the exportation of resources is associated with the decline of other industries. Moreover, service industries began to play a more important role in these countries. Industrialization created more income inequality for the top 0.1%. The contemporary challenges to labour regulation in low income settings of the South are also ripe for a less deterministic analysis of the impact of trade regulation once contemporary regulatory action is considered broadly, and across governance levels. Child labor was an essential component of industrialization. Your research and development budget could work harder as you can change existing products to suit new markets. Disadvantages of direct exporting are as follows: 1. 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. 1. However, there is a stark difference between proposing and analyzing a plan and enacting it and making it genuinely practical, which it is not, in today 's agenda driven environment. 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. Hence there is no scope for product development. Wong, Y.Y and Chan, P.S (1993) 'The Global Textile and Apparel Industries: US Protectionism and the Strategic Responses of Asian Competitors. ' But in large countries is the number of unemployed people and surplus products huge and a large increase in export cannot solve these problems. We dont walk to work because we can drive there. Here's a quick summary: Advantages of exporting There are multiple advantages of exporting for businesses of all sizes. The IS strategy yielded disappointing results: most of these countries did not succeed in either industrialization or economic growth while export-oriented industrializations (EOIs) sustained fast economic development. 1980, Intereconomics. In this case, much attention should be paid to manufacturing sector that cannot become competitive. 8. 5. It will be used different resources related to the topic. At present, the most eloquent example of export-oriented industrialization is China. Indeed, GDP growth will remain lower than optimum if exports stagnate. Poor Working Conditions Every industry is profit-driven; many companies look to maximize their profit by increasing the levels of production. That results in a further stimulus to economic growth and industrial investment. Some companies were even building towns to give homes to families in exchange for their labor. 9. It improves the quality of life for each person and household. By using our site, you agree to our collection of information through the use of cookies. 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. Agricultural production methods are different because of industrialization. "export-oriented industrialization," a development policy often promoted for a wide range of societies undertaking industrialization. It has closed the only land border Qatar shares with Saudi Arabia. , 2007).Strategic Orientation focuses on the way a firm adapts to and interacts with its external environments (Zhou and Li 2010). Furthermore, this policy implies that foreign market can be more profitable for a country, than the domestic one. Moreover, these nations had to rely on advanced technologies in order to retain comparative advantage. 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. Growth strategy is a strategy aimed at winning greater market share, even at the expense of short-term profit. And 98 percent of these exporters have fewer than 500 employees. When the workers with higher wages could invest their savings into new ventures, each economy benefitted because new cash pools help to fund new ventures. If the purchasing power of local clients does not become strong, the industrialization of a less developed country may not be successful. Foreign aid can also reduce the number of hunger people and accelerate the industrialization of undeveloped countries. 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. Bair, J 2009, Frontiers of Commodity Chain Research, Stanford University Press, Palo Alto. In addition, I will use other research papers with the same topic to find what experts say about this topic. Much attention should be paid to Asian countries such as Singapore or Taiwan. https://ivypanda.com/essays/export-oriented-industrialization-and-its-principles/, IvyPanda. The database is updated daily, so anyone can easily find a relevant essay example. 6. Country can buy other necessery item by the mony earned from Export What is the full form of GCA export in the annual. 4. Pollution of agro-ecosystems. He sacrificed almost everything in his pursuit of vulcanization. This strategy enabled many states to raise the standards of living and boost the development of industries. 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. 23 May. When people were creating items by hand, including books and clothing, then they needed to be compensated for their efforts. This means that fluctuations in currencies, which are out of your control, can end up costing you sales. 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. There are many different approaches to development in which countries over the years adopted to further develop and grow their economy. 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. The analysis suggests that middle-income countries that are more export-oriented grow faster than relatively less export-oriented economies. This can be especially challenging for small businesses that may not have the resources to make these investments. 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. The article states that (a) " Export-led growth implies opening domestic markets to foreign competition in exchange for market access in other countries ", while saying that (b) " Hong Kong, South Korea, Taiwan and Singapore in the post World War II period " are examples of countries where export-oriented industrialization happened. 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. For example, after financial crisis, the financial crisis, international raw material and energy prices practiced sharp volatility and this situation caused difficulties for countries which they wanted following this strategy. Each new invention or best practice that came about because of industrialization led to more jobs for the global economy. 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. May 23, 2020. https://ivypanda.com/essays/export-oriented-industrialization-and-its-principles/. It is an advantage that eventually led to higher levels of income for everyone in the economy. Clothing and export diversification : still a route to growth for low-income countries ? You'll get a detailed solution from a subject matter expert that helps you learn core concepts. They realized that their heavy reliance on natural resource export was not sustainable and made them vulnerable to the international market. Failure to know what they are and to comply can waste valuable company resources. Industrialization improved our medical care. Philippines. Research report submitted to the APEC . The second, much more debatable reason is that increased export growth can trigger . 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. 1. This advantage applies to services because industrialization provided equipment that made jobs easier to complete. Apart from that, such states can become extremely dependent on the trade policies of other states. The economic development of this country is primarily dependent on the foreign demand for its products and labor-intensive production. 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