Sample Essay 10

I mentioned this in class – but you may want to know what ISI (Import Substituting Industrialization) and EOI (Export Oriented Industrialization) was. Very likely that these will show up as IDs or a “compare & contrast” essay.

4 thoughts on “Sample Essay 10”

  1. Import Substituting Industrialization (ISI) can be used to protect infant industries. The components of ISI include high barriers to trade, subsidies, and incentives for consumers to buy a product. The state government may run or own part or all of the infrastructure of a company that they are supporting.

  2. good start. may also want to talk about when/where it became popular first. And its short-term vs long-term failings and successes. (of course, you’d need that much info for an essay, not necessarily for an ID)

  3. a. Import Substituting Industrialization (ISI)
    i. Can be used to protect infant industries.
    ii. The government may invest in and/or control all or aspects of the industry it is supporting
    iii. Protects the industry through the use of high trade barriers, subsidies, and consumer incentives
    iv. ISI became popular in the 1940s and 1950s in Latin America and was the reason why Latin American economies grew so successfully after colonialism
    b. Export Oriented Industrialization (EOI)
    i. Can be used to make aspects of a state's economy globally competitive
    ii. The government is heavily involved
    iii. The government decides to really grow an aspect of the economy and make it very globally competitive
    1. Example: Japanese car industry with companies such as Toyota
    iv. EOI first became popular in the 1970s and 1980s with the Asian Tigers (Hong Kong, Singapore, Taiwan, and South Korea)
    c. Short-term vs. Long-term Failures and Successes
    i. Short-term failure of ISI: Opportunity costs
    1. Example: grape farmers
    ii. Long-term success of ISI: rapid industrialization in Latin America allowed ex-colonies to quickly develop into successful states
    iii. Short-term success of EOI: extraordinary economic growth over a very short time span – the "Asian economic miracle"
    iv. Long-term failure of EOI: 1997 Asian Economic Crisis – Most Asian economies were dependent on investment from foreign consumers, but when the Crisis began to develop, people stopped investing, so Asian economies fell

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