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Import Substitution
Describe import substitution (Inward looking) developmental strategy, clearly
outlining the differences between the first and second stage. Assess its
effectiveness in promoting economic development. Compare inward looking and
outward looking strategies and discuss the assertion that the latter is superior.
The First Stage of Import Substitution:
All present day industrial and developing countries protect their
manufacturing industries for the domestic markets. While the industrial
countries of today rely primarily upon the usage of relatively low tariffs,
developing countries apply high tariffs or quantitative restrictions which
either limit or completely exclude competition from their imports. Protection
like that - high protection - discriminates against exports through the
explicit/implicit taxation of the export activities.
Explicit taxation can take the form of export taxes whereas implicit
taxation occurs as a result of the effects of protection on......
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Title: Import Substitution
Approximate Word Count: 527
Approximate Pages: 3 (250 words per double-spaced page)
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