Export-oriented industrialization and Free trade

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Difference between Export-oriented industrialization and Free trade

Export-oriented industrialization vs. Free trade

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. Free trade is a free market policy followed by some international markets in which countries' governments do not restrict imports from, or exports to, other countries.

Capital (economics)

In economics, capital consists of an asset that can enhance one's power to perform economically useful work.

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Comparative advantage

The law or principle of comparative advantage holds that under free trade, an agent will produce more of and consume less of a good for which they have a comparative advantage.

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Four Asian Tigers

The Four Asian Tigers, Four Asian Dragons or Four Little Dragons, are the economies of Hong Kong, Singapore, South Korea and Taiwan, which underwent rapid industrialization and maintained exceptionally high growth rates (in excess of 7 percent a year) between the early 1960s (mid-1950s for Hong Kong) and 1990s.

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Great Depression

The Great Depression was a severe worldwide economic depression that took place mostly during the 1930s, beginning in the United States.

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Ha-Joon Chang

Ha-Joon Chang (born 7 October 1963) is a South Korean institutional economist and socialist specialising in development economics.

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Import substitution industrialization

Import substitution industrialization (ISI) is a trade and economic policy which advocates replacing foreign imports with domestic production.

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Market (economics)

A market is one of the many varieties of systems, institutions, procedures, social relations and infrastructures whereby parties engage in exchange.

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Subsidy

A subsidy is a form of financial aid or support extended to an economic sector (or institution, business, or individual) generally with the aim of promoting economic and social policy.

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Tariff

A tariff is a tax on imports or exports between sovereign states.

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World War II

World War II (often abbreviated to WWII or WW2), also known as the Second World War, was a global war that lasted from 1939 to 1945, although conflicts reflecting the ideological clash between what would become the Allied and Axis blocs began earlier.

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