Question

What is the difference between import-substitution industrialization and export-oriented industrialization, Why did one method seem to work better than the other as a means to help countries develop economically (have economic growth and provide jobs).

Answer 1

Import Substitution is nothing but a method in which domestic economy and producers are seen and motivated to produce rather than depending on imports for the own consumption as a result of which the domestic economy can flourish and at the same time imports can be restricted where the dependence from other countries is also restricted. export oriented method is nothing but a method in which the economy is motivated in order to produce excess so that the the remaining amount after consumption is exported to various nations. It is observed that export oriented industry work better than that of import substitution and this is because of the fact that export orientation can increase the balance of payments due to more amount of Exports as a result of which trade is flourished and capital inflow into the economy is seen with which the country got to develop with the help of more innovation and in terms of economic growth where the production in export oriented industry is very high as a result of which more jobs and employment is