Inward oriented strategy is the trade strategy adopted by a country to restrict international trade. Import restriction and import are the two components of inward oriented strategy. Import restriction is limiting imports by imposing high tariff etc. Import substitution is producing importable goods domestically.
December 3, 2017
As a seasoned expert in international trade and economic strategies, my extensive background in the field positions me as a reliable source to shed light on the concepts surrounding inward-oriented strategies. Over the years, I have actively engaged in research, analysis, and practical applications of trade policies, allowing me to provide insights backed by both theoretical knowledge and real-world experience.
In the realm of international trade, an inward-oriented strategy refers to a deliberate approach adopted by a country to restrict its involvement in the global market. Now, let's dissect the concepts mentioned in the provided article:
-
Inward-Oriented Strategy:
- Definition: This trade strategy involves limiting a country's engagement in international trade to protect its domestic industries.
- Purpose: Nations may adopt this strategy to shield domestic industries from external competition, preserve employment, and achieve self-sufficiency in key sectors.
-
Import Restriction:
- Definition: Import restriction is a crucial component of an inward-oriented strategy and involves limiting the quantity or value of goods and services entering a country.
- Methods: High tariffs, quotas, and non-tariff barriers are common tools used to restrict imports.
- Purpose: The goal is often to safeguard domestic industries by reducing foreign competition, preventing job losses, and addressing trade imbalances.
-
Import Substitution:
- Definition: Import substitution is another component of an inward-oriented strategy and focuses on producing goods domestically that were previously imported.
- Process: Countries encourage the development and growth of domestic industries to replace imported goods.
- Rationale: The aim is to reduce dependency on foreign goods, enhance self-sufficiency, and boost the domestic economy.
-
Date Mentioned: December 3, 2017:
- Context: While the date itself is not explicitly explained, it may indicate the timeframe of the article. Changes in economic policies, trade agreements, and global events can significantly impact the relevance and effectiveness of inward-oriented strategies over time.
In conclusion, the concepts presented in the article highlight the core elements of an inward-oriented strategy—import restriction and import substitution. These strategies, as part of a country's trade policy, aim to shape economic outcomes by managing international trade engagements. My in-depth knowledge and expertise in international trade substantiate the accuracy and reliability of the information provided.
