What is an outward orientation?

What is an outward orientation?

An outward-oriented growth strategy is one that is oriented towards export and trade, and an inward-oriented growth strategy involves selling to consumers in one’s own country and focusing on economic development. While both strategies can be successful, most countries need to combine the two.

What is outward looking strategy?

In short, an outward-looking strategy calls for a direct transition from a simple, open trade policy to vigorous promotion of manufactured exports by all internationally tolerated means, without going through an in-between phase of high protection. The strategy is perhaps best exemplified in Japanese development.

What is inward oriented strategy?

Inward oriented strategy is the trade strategy adopted by a country to restrict international trade. Import restriction and import are the two components of inward oriented strategy. Import restriction is limiting imports by imposing high tariff etc. Import substitution is producing importable goods domestically.

What is the export oriented strategy?

An export-led growth strategy is one where a country seeks economic development by opening itself up to international trade. By the 1980s, many developing nations liberalized trade and began to adopt the export-oriented model in lieu of import substitution.

What is meaning of inward orientation?

adj. 1 going or directed towards the middle of or into something. 2 situated within; inside. 3 of, relating to, or existing in the mind or spirit. inward meditation.

How do inward-oriented policies affect a nation’s growth?

Inward-oriented trade policies are akin to a country choosing to restrict the use of superior technologies. At first patents might seem like a deterrent to growth because in effect they restrict the use of new technology. Yet many economists believe that patents generate growth.

What are outward oriented policies?

In general, an outward oriented strategy is one in which trade and industrial policies either do not discriminate between production for the domestic market and exports, and between purchases of domestic goods and foreign goods (strongly outward oriented) or only moderately discriminates in favour of domestic …

What is inward looking development?

Inward looking strategies were typical of the general approach to development which dominated thinking after the Second World War. This approach is interventionist and protectionist, and guided policy making in many African and Latin American countries, and in some countries still does.

What is meant by export-oriented Industrialisation?

Export-oriented industrialization (EOI) sometimes called export substitution industrialization (ESI), export led industrialization (ELI) or export-led growth is a trade and economic policy aiming to speed up the industrialization process of a country by exporting goods for which the nation has a comparative advantage.

What are export-oriented industries?

(ˈɛkspɔːtˌɔːrɪənˌteɪtɪd) or export-oriented. adjective. business. (of an industry, company, etc) mainly concerned with the export of goods or services. export-orientated industries/companies.

What is import substitution?

Import substitution is the idea that blocking imports of manufactured goods can help an economy by increasing the demand for domestically produced goods. The logic is simple: Why import foreign-made cars or clothing or chemicals when one could produce those goods at home and employ workers in doing so?

Which means acceptance of an outward looking policy of economic development in place of an inward looking one?

Inward looking trade strategy is also known as import substitution.

What is the difference between outward and inward development?

First, nations characterized as following outward-oriented development do not trade notably more than those regarded as inward-oriented. Second, outward-oriented nations do not expand their trade at a rate strikingly different from other countries.

Does outward-oriented development increase trade?

First, nations characterized as following outward-oriented development do not manifest levels of trade notably higher than those regarded as inward-oriented. Second, outward-oriented nations expand their trade, but not at a rate strikingly different from other countries.

What are outward-oriented and inward-oriented development strategies?

Outward-oriented development strategies focus on producing manufactured products for export. On the other hand, inward-oriented development strategies focus on developing a domestic manufacturing sector to produce goods that can substitute for imported manufacturing goods.

Do outward-oriented nations grow more rapidly?

In re-examining the Bank’s much-cited analyses which suggest that “outward-oriented” nations have experienced more rapid growth, this study uncovers three findings which challenge its apparent implications. First, nations characterized as following outward-oriented development do not trade notably more than those regarded as inward-oriented.