Trade Policy in Developing Countries

Trade Policy in Developing Countries - Chapter 10 Trade...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 10: Trade Policy in Developing Countries April 10, 2008 Previous Lecture Falling personal savings Decline in gross US savings Foreign purchases of Us securities finance most of the US current account deficit Higher savings Lower consumption Chapter 10 Import substituting industrialization o (Argentina- produced Ford Falcons under highly protected environment- produced to serve domestic market) Industrialization commonly viewed as the vehicle for development Trade liberalization since 1955 Export-oriented industrialization o Korea, China, Taiwan o Economies of scale- serving a bigger market Defining a “developing country” o Name given to many low and middle income countries Import Substituting Industrialization o This strategy adopted by many low and middle income countries before the 1980s o Depends on elasticities o Policy aimed to encourage domestic industries by limiting competing imports o Often accompanied by belief that poor countries would be exploited by
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 2

Trade Policy in Developing Countries - Chapter 10 Trade...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online