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Import-Substitution and Industrialization is an economic policy that aims to promote the replacement of imports with locally produced goods, mainly industrialized goods. The main concept behind this policy is that a nation should try to minimize its reliance on foreign goods by domestically manufacturing industrialized goods. Usually, countries that tend to depend on importation of goods should start focusing on their production of goods that they previously imported. The goal is to not only make these nations less dependent on external goods but also to build their economy via industrialization.
The concept of import substitution and industrialization emerged in the Latin American region courtesy of the Second World War. Countries in this area sought to protect, grow and strengthen their domestic industries through various tactics such as subsidizing government loans, import quotas, and trade tariffs. Today, a great number of Latin American states have adopted import substitution and industrialization policy with the aim of becoming highly self-sufficient and less vulnerable to uncertain terms of trade. Since the implementation of this policy, these countries have successfully built production channels for each stage of their product development. This has helped these countries to protect themselves and avoid being vulnerable to external terms of trade, especially the negative terms.
The main idea is that countries are spending lots of income on commodities manufactured by overseas nations, which in the end sends money away from the domestic economy. Therefore, import substitution and industrialization is one way to prevent money from leaving the local economy because it links the domestic demand for commodities with the domestic suppliers of these products. Most products and services that businesses and individuals needs can be easily found from local suppliers; however, because of insufficient convenience or information, people often buy these things from the outside. This promotes the exit of capital from the economy. Hence, through substitution of demand for foreign goods with domestic things, a country may retain capital for use within the local system.
Economic development is a key element of growth and sustainability of a country, as well as of equity, prosperity and well-being of its population. Recently the world has witnessed rapid economic growth of two Southeast Asian countries: China and Vietnam. Both of the countries faced major challenges for the growth of their economy, they survived these challenges well and proved themselves to be the success stories of development. Vietnam continues
59-84). A lack of rule of law equates to lawlessness and high levels of violence and theft. In aggregate the factors of investment, fertility, schooling, and socio-political openness to new venture create statistically significant differences in economic performance between the regions. What De Gregorio (et. al.) also found was Latin American nations are continually coming in and out of economic crises, which makes their banking system, money supply and balance-of-payments
E-Banking Modernization on the technological front by the business sector during the nineties has transformed the manner in which Indian businesses are required to be performed. I.T. has launched novel business models and is more and more contributing a major part in enhancing the e-banking services in India. (E-Banking: An Emerging Perspective of the Regulatory and Taxation Issues) The description of e-banking differs among the research fraternity since electronic banking pertains
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Kemal Ataturk Kemal Ataturk, founder of modern Turkey and its first elected president, was born as Mustafa on March 12, 1881 in Salonika or Thessaloniki, in Greece which was then under the Ottoman Empire. His father, Ali Reza Efendi, was a customs official who wanted his son's education to take place in a secular school. However, his father died while he was still a child. It was his mother Zubeyde Hanim
Russia Globalization The Economic Intelligence Unit ranked Russia near the bottom of its list of globalized countries, giving it a ranking of 55th among the 60 countries surveyed (St. Petersburg Times, 2010). When the Soviet Union collapsed, there was tremendous hope that the burgeoning trend of globalization would spark a bright future for the Russia. Those hopes quickly faded. Despite its considerable resources wealth, including the world's largest natural gas reserves