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trade strategies - Coggle Diagram
trade strategies
export promotion
a growth and trade strategy based on strong government intervention intended to promote economic growth through the expansion of exports
Targeting of specific export industries; particularly those that were able to contribute higher value-added to the economy.
Support of export-oriented industries through industrial policies including subsidies, investment grants, tax exemptions, etc.
Large investments by the government in education, research and development and infrastructure (communications and transportation).
Some trade protection of industries, but only in certain areas, based on the infant industry argument.
import subtitution
Protection of domestic industry was seen as the way to protect domestic employment, since trade barriers limit the quantity of imports.
Placing limits on imports was considered to be a way to avoid current account deficits and balance of payments difficulties.
E.G Having begun in Latin American countries in the 1930s, it was very widespread throughout most ELDCs by the 1950s and 1960s.
is a growth and trade strategy based on strong government intervention involving heavy protection of domestic industries (through tariffs, quotas) intended to replace imports with domestic productions
The role of the WTO
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Help in resolving disagreements and differences between trading partners, avoiding disputes that result in trade wars.
Provide a forum where all participating countries can voice their opinions and argue in favor of their interests.
Trade liberalization
eduction or removal of trade barriers (tariffs, quotas, etc) aiming to achieve growth of international trade based on the principle of free trade
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