Globalization

1. DS 2201: Globalization, Trade and Development
Section: B
Topics: Trade And Industrial Strategy
Packae-4, Group-4

2. Group Member:
Name: Student ID:
Ridoy Cowdury 132107
Taslima Akter 132108
Sayeda Afsana Zaman 132112
Saida Katun 132118
Rumpa Das 132133
Abdulla-Al-asib 132136

3. Outline:
• Import Substituting Industrial Strategy
• Managing Common Property Resources
• Outward Oriented Industrialization
• Te East Asian Experiences: Markets and
Industrial Policy

4. Sayeda Afsana Zaman
Student ID: 132112
Topic: Import Substituting Industrial Strategy

5. Import substitution strategy:
Import substitution strategy is a trade and economic policy which
advocates replacing foreign imports with domestic production. It is
a trade policy aimed to promote economic growth by restricting
imports that competed with domestic products in developing
countries.

6. History of Import Substituting Industrial strategy:
• It was popularized in the 1950s and 1960s
• Import Substitution Industrialization (ISI) was gradually
abandoned by developing countries in the 1980s and 1990s due

7. Measures for import substitution:
• Import Licenses
• Guarantee Deposits
• Tariff Walls
• Physical Restrictions

8. Advantages
•
• Increase in domestic employment.
• Reduced dependence on labor non intensive industries.
• Resilience in the face of global economic shock (recessions
& depreciations)
• Less long distance transportation of goods.
• Tries to reduce reliance of imports of popular consumer
goods from other countries by creating its own industry to
support consumer demand

9. Disadvantages:
• The IS industries are inefficient as they are not exposed
to internationally competitive industries.
• Increase in unemployment internationally as world GDP
decreases through promotion of inefficiency.

10. Objective:
• Promotion of Domestic Industry
• Employment Generation
• Promotion of Industrialization
• Production of consumer’s goods
• Improvement in Balance of Payment.