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Ask us anythingBecause most developing countries have weak domestic industries they do not benefit from what?
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If developing countries have weak domestic industries they do not benefit from what?
Free-trade policies
Because most developing countries have weak domestic industries the do not benefit from what?
free-trade policies
Why do developing countries not usually benefit from free trade?
Their industries are too weak to compete in the international market.
What is import substitution?
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 are the Disadvantages of foreign aid to developing countries?
A disadvantage of foreign aid to a developing country might be the amount of money used for foreign aid when domestic aid is needed. It can be known up front if the aid will benefit the developing country.
If developing countries have weak domestic industries they do not benefit from what?
Free-trade policies
Because most developing countries have weak domestic industries they do not benefit from what?
Free-trade policies
Because most developing countries have weak domestic industries the do not benefit from what?
free-trade policies
What are the negitives of globalization?
1.Lose self dependency and self reliance 2.Ruins domestic industries. 3.Developing countries may loose cultural identity. 4.More dependency on foreign capital and technology . 5.Developing countries may become the market of developed countries. 6.Developing countries may be the victim of International Monopolies.
In order to promote domestic industries in the 1930s countries?
devalued their currencies
What did countries do in the 1930's to promote domestic industries?
devalued their currencies
In order to promote domestic industries in the 1930's countries did what?
devalued their currencies
What two events prompted America to begin developing domestic industries?
Embargo Act of 1807 War of 1812
What can help less developed countries do to affect domestic innovation?
Developing countries can benefit from an expansion in international trade markets.
Why do developing countries not usually benefit from free trade?
Their industries are too weak to compete in the international market.
What is the importance of food substitution?
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. prepared by.Shakir munhakkal
What is import substitution?
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.
