Three advantages and three disadvantages of export diversification

Résumé du document

Chile is a recent example of a country whose economic policy is based on the industrialization of exports as Chile's economy took off in the midst of 1980s. This tremendous had huge consequences on its economy bringing positive changes is all its economic sectors. Before going into details, one has to differentiate between vertical exports diversification and horizontal diversification as they have different goals and consequences.

Extraits

[...] For the reasons described above, Chile became one of the wealthiest countries in Latin America; achieving its transition from a third world country into a new industrialized one. This graph shows how the change of policy helped Chile's economy to become so competitive as the annual increase in GDP is much higher following the reforms that occurred during the 80s. However, Chile did not escape a short period of economic hardship during the late 90s partly due to its reliance on export diversification. [...]

[...] Three advantages and three disadvantages of export diversification Brazil and China present examples of export-led industrialization. Drawing from class lectures (including the guest lecturer) and debate, select one country and detail three advantages and three disadvantages of export diversification Chile is a recent example of country whose economic policy is based on export-led industrialization as Chile's economy took off in the midst of the 80s. This tremendous change from everything that had been done before in the country had huge consequences on its economy in general, affecting every sector of the economy. [...]

[...] A third common reason why export diversification might be unwise is the lose in sovereignty that necessarily goes along with such types of strategies. The case of South Korea is once more relevant because the economy reliance on exports automatically gives more power to the country's economic partners in general, and to the United States in particular. South Korea is then submitted to a huge American influence to the extent that one talks about “Americanized Korea”[3]. Dierk Herzer (2006). Export diversification, externalities and growth. [...]

[...] Retrieved April http://ideas.repec.org/p/got/iaidps/099.html Mendis, P. (2005) Freedom on the March: An American Voyage to Explore Globalisation. Sarvodaya Vishva Lekha publication. Pg Mendis, P. (2005) Freedom on the March: An American Voyage to Explore Globalisation. Sarvodaya Vishva Lekha publication. Pg. [...]