Question

Utilize the WWW to research ISI (Import Substitution Industrialization) strategy. Why has it fallen from favor since the 1970s - Discuss.

PLEASE PLEASE PLEASE Can you please have it typed and not handwritten?

Answer 1

Solution;

Given that

  Utilize the WWW to research ISI (Import Substitution Industrialization) strategy. Why has it fallen from favor since the 1970s.

• The countries which adopted ISI on prosperity and self-realiance .
• This is dissopointed by the performance.
• Until 1980 America,Africa and asian countries followed this policy.
• The basic promise was nationalization and subsity of power,agriculture etc,since they are vital industries.
• This is having the greater taxation and productionism.
• The aim for this is to increase production at each stage of product development
• Here Developing countries slowly turned away from ISI in 1979 because rise of the global market.
• Here driven liberalization ,led by IMF and world bank based on structural adjustment programs.
• Since ISI came to the cost of high social and economic.
• This policy based on growth of domestic market .
• This is failed because of limited size and lack of competition and manufacturing experience.
• This led to reduce innovation and efficiency which kept heavy prices and less quality.
• In case of lattin america and increased inequality the power was concentrated in handle of few copy.
• This ISI policies received in the long term,both growth and output reduces and no gains to realised from specialisation and foreign   imports.
• Thus the poor recource allocation od resources,less incentive for improving productsand reduce costs to increase efficiency.
• This can effect on exchange rates and harming exports.