The Modern World Economy Essay Example | Topics and Well Written Essays - 2000 words

The Modern World Economy - Essay suitThe essay The Modern World Economy talks about infant argument claims in damage of the modern world economy and analyses the experience in this question of different countries.The experience of West Germany, the united States, Japan and reciprocal ohm Korea suggests that governmental support in promoting infant industries did assist efficient industrialization processes to about extent. However, the experiences of other countries, mainly the developing countries, seem to suggest that protection policy has been frequently abused.Therefore, it is not impress to find a large body of literature which exhibits considerable skepticism concerning the success of infant pains protection in developing countries. The effective rate of protection has been high for most import-competing industries for a immense time and export performance has been poor, with most of them being orientated towards the domestic market.Recent writings in the theory of inter national trade suggest that IS and EP industrial strategies are not mutually exclusive. For example, Krueger (1995, p. 207) digest argued that these ii strategies are sequential rather than being alternatives and they can be compatible rather than separate strategies. They have further asserted that IS is needed not only for creating export ability, but also for providing the volume institution necessary for competitive exportation.Indeed, this is the core of the infant industry argument. Empirically this view has been supported by South Koreas success in its policy of pursuing both EP and IS strategies simultaneously.