The import substitution strategy has certain strong points: Firstly, in developing countries there are always large domestic markets for manufactured goods, so developing an import subsitution industry involves a low degree of risk. Secondly, for developing countries, to protect local industries against foreign competition is easier than forcing developed countries to lift trade barriers against manufactured goods from developing countries. However, this strategy also meets with difficulties: Firstly, bad management and technology, and protectionism usually lead to low product quality and high production cost because of a lack of improvements. So it's difficult to require local industries to supply high-quality substitutes for imports. Moreover, in small countries with small domestic industries, carrying out the import substitution strategy is no easy task. Secondly, a lack of capital and new technology has made local industries failed to meet diversified tastes of customers, and has made imported goods cheaper than locally-made counterparts. The export-oriented strategy also has both the pros and cons. In developing countries, low personal income makes the domestic market less attractive, so aiming at larger foreign markets seems to be a good solution which could help to: (1) create more jobs and stabilize socio-political life, and (2) bring in more foreign exchange needed for importing new technologies and increasing manufacturing output. However, countries adopting this strategy meet with a lot of difficulties in gaining a foothold in the world market which is relatively stable and is controlled by more reliable suppliers from developed countries. In addition, developed countries are experts in protecting their labor-intensive industries against products from developing countries with better comparative advantages.
what is d difference between import substitution and export promotion
export promotion is exporting morn than import when production is more there is more export to other states and countries . import substitution means substituting import from one place to other.
gererate employment
protectionist policies were emphasized
import substitution(impex) and export promotion(exim)
what are the main criticism of import substitution industrialisation
what is d difference between import substitution and export promotion
export promotion is exporting morn than import when production is more there is more export to other states and countries . import substitution means substituting import from one place to other.
gererate employment
Explain how entrepreneurship can lead to import substitution and utilization of resources
True
protectionist policies were emphasized
import substitution(impex) and export promotion(exim)
What would be one effect of import substition on the balance of trade of a country
One way is by imposing tariffs
protectionist policies were emphasized
when i get the ans i'll let u know all