Export-oriented industrialization
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Export-Oriented Industrialisation (EOI) is a trade and economic policy aiming to speed-up the industrialization process of a country through exporting goods for which the nation has a comparative advantage. Export-led growth implies opening domestic markets to foreign competition in exchange for market access in other countries. Reduced tariff barriers, floating exchange rate (devaluation of national currency is often employed to facilitate exports), and government support for exporting sectors are all an example of policies adopted to promote EOI, and ultimately economic development. Export-Oriented Industrialisation was particularly characteristic of the development of the national economies of Japan, South Korea, Taiwan and Singapore in the post World War II period. The purpose of international institutions such as the World Trade Organization, work in favour of such trade strategies and promote multilateral trade policy rules to put every nation on the same playing field.
Export-oriented industrialization is often contrasted with import substitution industrialization.
