FOREIGN SECTOR

1
FOREIGN SECTOR

• COMPONENTS TRADE, FDI, ODA
• TRADESIZE OF ECONOMYINDICATORSEXPORT (X),
  IMPORTS (M)TYPES OF GOODS PRIMARY
  GOODS MANUFACTURED GOODSTRADING PARTNERS

2

• EXPORT OF PRIMARY PRODUCTS
• CONCENTRATION
• PROBLEMSSLUGGGISH DEMAND ENGELS
  LAW SYNTHETIC SUBSTITUTES MATERIAL
  SAVINGDECLINING TERMS OF TRADEFLUCTUATING
  EXPORT EARNINGS
• TRADE POLICYINWARD-LOOKING (ISI)OUTWARD
  LOOKING (EP)

3

• IMPORT SUBSTITUTION INDUSTRIALIZATION (ISI)
• INFANT INDUSTRY ARGUMENT
• PROTECTIONISMNOMINAL PROTECTIONEFFECTIVE RATE
  OF PROTECTIONCOSTS OF PROTECTION LOSS OF GNP
  INFLATION HIGH RENTS CORRUPTION CAPITAL
  INTENSITY OVERVALUED EXCHANGE RATE (FAVORS
  IMPORTS)