The industrial development of these countries can also be explained by the fact that they had strong economic relations with Japan which passed through a period of rapid growth in the early sixties. For each listed company, take note of how long they have been in business, the number of employees, the products in which they specialize, and the countries to which they export. These processes contributed to the improvement in the standards of living. Retrieved from https://ivypanda.com/essays/export-oriented-industrialization-and-its-principles/. 7. Disadvantages Of Machines In Industries Although machines led to the increase in production, it has they have following disadvantages. It allows a worker to focus on specialization. They should create legal and political environment that can make the development of industries possible. In the long-term, such a state can become very vulnerable to the changes in external environment. East Asian countries can therefore continue their export oriented strategy, but should be prepared for slower progress than in past decades. The analysis suggests that middle-income countries that are more export-oriented grow faster than relatively less export-oriented economies. During the 19th century, it was not unusual to see people working with a finger, a limb, or worse. It allowed people to step outside of the family business to try something new. Investopedia define Globalization as the tendency of investment funds and businesses to move beyond domestic and national markets to other markets around the globe, thereby, If all of these criteria are met, a candidate is legally, While considering there were many helpful, positive effects to industrialization, in the end, the negative out-weighs the positive. By producing goods in larger quantities, businesses can often lower their production costs and increase their profitability. "Export-Oriented Industrialization and Its Principles." Moreover, in many cases, the development of an industry is affected by the governmental policies. Instead of mixing foods by hand, we use small appliances. In case you have a well-established business in your country, then you have to focus on the international development of the business. If you find the right market, it's also possible that you spend your whole life fulfilling the demands of just one country's market. Some countries adopted the approach of import substitution in which they try to decrease their dependency on other nations and protect and foster domestic small companies. 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. A myriad of economic benefits stems from this particular development. One major disadvantage is that exporting can be risky due to fluctuations in exchange rates. Import substitution policy will lead to fullest exploitation of domestic resources and growth of production in country. We made things because of their usefulness, which limited our innovation. Businesses use the concepts formed from industrialization to have a more abundant supply available for particular goods and services. inventionjournals 404 views I will compare the different articles and analyze the arguments. F. Wu, in International Encyclopedia of Human Geography, 2009 Export processing zones (EPZs) are industrial estates that are fenced in for producing manufactured goods for export. Market research, marketing campaigns and initiatives, administrative costs, travel costs for employees - these costs can add up significantly. Globalization is a process of linking the world through many aspects, from the economic to the culture, the political. Businesses use the concepts formed from industrialization to have a more abundant supply available for particular goods and services. Later, in this strategy economic growth will be analyzed. industrialization of developing countries occurred according to two broad types of strategies. They also raise trade disputes because high import tariffs imposed on foreign countries allow them to do the same to the domestic country. People who are importing goods and finished products from other countries may have a chance to survive. While China benefited from this strategy, Thailand, Indonesia faced a lot of difficulties. 5. Learning Objectives Type of Entry Advantages Exporting Fast entry, low risk Licensing and Franchising Fast entry, low cost, low risk Partnering and Strategic Alliance Shared costs reduce investment needed, reduced risk, seen as local entity Acquisition Fast entry; known, established operations Why is exporting difficult? 23 May. The world has become a small place. 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. We utilize security vendors that protect and 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. As elsewhere in the world, there is an increasing shift in India to have large power houses particularly super thermal power stations. IvyPanda. 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. From about the Second World War up to the 1970s the dominant strategy was import substituting industrialization. professional specifically for you? Moreover, it can be possible if the barriers to free trade are eliminated. 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. Not all of the items in your country will be easy to export. 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. India has always followed a development model for its International trade since the liberalization in 1990s. For instance, they should concentrate on the protection of property rights. 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. https://ivypanda.com/essays/export-oriented-industrialization-and-its-principles/, IvyPanda. 4. It will be used different resources related to the topic. Effect o. For instance, it is possible to mention absence of corruption, accessibility of the world markets, or the development. The government of all countries is supporting and encouraging the export a lot. This may require additional staff and therefore lead to an expansion. Importing goods brings new and exciting products to the local economy and makes it possible to build new products locally. After industrialization, CO2 rates rose to 400 parts per million. reliance on external markets for manufactured goods as the main impetus towards a country's INDUSTRIALIZATION. 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. (2020) 'Export-Oriented Industrialization and Its Principles'. Wang Bo Ren(2006) argued that the export-oriented industrialization model need some prerequisites: some of the domestic industrial sector has already high level of technology and production management experience, also the adequate management personnel and skilled workforce. 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. 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. 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. 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. This event would lead to the first time in history when the poor or middle class could save money while still meeting their needs. If the export of goods is greater than the import of goods then the different between the export and import is positive and said that the country has positive balance of trade. However, these short-comings do not undermine the positive role that was played by export-oriented architecture. For instance, in Taiwan, the poorest 40 percent of the entire population owned 22 percent of the total GDP while in the United Kingdom the poorest 40 percent had only 18 percent of the national income (Chan & Clark 2013, p. 1958). The working conditions declined during industrialization. 2. Industrialization makes goods and services more affordable. Wong, Y.Y and Chan, P.S (1993) 'The Global Textile and Apparel Industries: US Protectionism and the Strategic Responses of Asian Competitors. ' From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. Proper Choice for Certain Products: The direct exporting is necessary in the following cases and there is no other alternative to get success: i In respect of commodities which use a highly technical sales organisation and require after sale services; ii When middlemen are disinclined towards accepting all the risks of export trade. Growth strategy is a strategy aimed at winning greater market share, even at the expense of short-term profit. These institutions co-evolve in complex interactions between formal and informal institutions (North, 1990) at national as well as local level. In mets giveaways august 2021 What does this mean emulate what you respect in your friends? These could help in improving those countries position in the world. 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. However, it is important to remember that income inequality, which is measured by Gini coefficient, was higher in some western countries, even in comparison with some Asian states that relied on export-oriented industrialization. After World War II, this approach to economic development has been adopted by different countries. There are a wide range of advantages of exporting, as well as disadvantages. When that many people lived close together in unsanitary conditions, it was not unusual for diseases to start spreading rapidly. Therefore, it is not possible to argue that export-oriented industrialization inevitably lead to inequality within a society. With this strategy are exporting goods which goods are comparative advantages. Sorry, preview is currently unavailable. The bitter truth is that compliances are getting tougher with time for exporters. Moreover, they can get access to education (Hamilton 1996, p. 1). Any company, before the allocation of resources for a project in the field of export must carefully evaluate the pros and cons of exporting to new markets. It is a term usually applied to those THIRD WORLD countries which have attempted to find niches in the world market where advantages of low labour costs may make their goods cheaper than those produced in industrial countries. 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 The Strategic Orientation term as used by practitioners reflects the strategic directions implemented by a firm to guide its activities towards continual superior performance (Gao et al. Despite the expansion problems, crop diversification has the potential to be an economic driver in agricultural regions. We have plastics pollution everywhere, with microplastics entering the human food chain because animals consume these small items. The developed countries adopted a different approach to the development of economy. It is argued that the relationship between trade liberalization and labour law must be understood as constantly reconstructed across governance levels and with a view to forms of distributive justice beyond national borders. in different nations. The agricultural industry relies on automation, longer shelf life, and other interventions that allow for large-scale farming instead of homesteading. A market-based institutional framework is essential for attracting FDI to a country (World Bank, 2002). This means that fluctuations in currencies, which are out of your control, can end up costing you sales. Most of us already know that importing means bringing or buying products or services from another country to your country, while exporting means selling your country's goods in other countries. "Export-Oriented Industrialization and Its Principles." When an economy industrializes, things are made more rapidly and in higher quantity. As well as, firstly, it must be noted that export oriented industrialization is different in large countries and smaller countries. The Advantages and Disadvantages of Industrialization. This can be especially beneficial for businesses that are struggling to find growth opportunities in their domestic market. Some firms may not have the technical know-how where these modifications are concerned and might have to incur the costs associated with hiring an expert. This is true of many economies aiming to exploit their comparative advantage in primary commodities as they have a . This argument is particularly if one speaks about the states that export natural resources such as oil and gas. However, there are also several disadvantages to exporting that businesses must consider. The concepts formed from industrialization to have large power houses particularly super thermal power stations institutional framework is for! 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