Import Substitution

Below is a free term papers summary of the paper "Import Substitution." If you sign up, you can be reading the rest of this term papers in under two minutes. Registered users should login to view this term paper.

Term Paper Title	Import Substitution
# of Words	545
# of Pages (250 words per page double spaced)	2.18

Import Substitution

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 the exchange rate.
As your protection level increases, your exchange rate level will decrease in
order to ensure the necessary equilibrium of the balance of payments and the
lower the amount of domestic currency exporters receive per unit of foreign
exchange earned.
     There is no need for high protection at the first stage of import
substitution in the replacement of the imports of non-durable consumer goods
(clothing, shoes, household goods, textile fabrics, leather, wood and other
types of inputs) since these commodities exist in the developing countries that
are at the initial frontier of industrialization.
     The commodities I mentioned are intensive in unskilled labor, the scale
of output is relatively low, and costs do not rise substantially at lower output
levels. The production of the commodities do not involve the use of
sophisticated technology or highly educated workers and suppliers for parts,
components, materials and accessories are not necessary for highly efficient
operat...

This is not the end of the termpaper! Register below to see the complete version of this term paper.

Membership Plans	Credit Card	Check

1 month membership

3 month membership (You Save 50%)

6 month membership (You Save 67%)

Copyright © 2002-2007 Mid Term Papers. All rights reserved. This term papers website is used for research purposes only.
If you have forgotten your username or password, please click here.
If you like to cancel your account, please click here.

1 - 2 - 3 - 4 - 5 - 6 - 7 - 8 - 9 - 10 - 11 - 12 - 13 - 14 - 15 - 16 - 17 - 18 - 19 - 20 - 21 - 22