Economics of Developing Countries - Essay Example

Download file to see previous pages... This strategy aims to increase the domestic production and reduce the dependency on foreign imports. Outward looking strategy Outward looking strategies are not just related to primary exports, but lay more importance on the trade of employment opportunities and other strategies which increases the level of income in the country. Trade expansion is to be used for economic growth and the generation of employment opportunities. b) India’s trade policies have changed rapidly since independence. Before independence India made imports for even those products which could be manufactured in India. But after independence there was a change in strategy and more emphasis is being laid on exports rather than imports. Today India has a strong trade policy and lays more emphasis on exports and follows the import substitute industrialization policy and restricts its imports. India now uses trade expansion as an instrument for economic growth and the generation of employment opportunities. It has been effective in improving India’s economy especially developing the agricultural economy. The overall trade policy is good for Tamil Nadu as Tamil Nadu has increased its agricultural income. c) Both India and china have been successful in increasing their exports and reducing their dependence on imports. China has laid emphasis on the export of manufactured products, while India has laid much emphasis on the export of services. India’s exports are of capital and skill intensive products, while china’s exports are labor intensive goods. Both the countries have reduced their imports by the Import substitute industrialization strategy. Question 6: The article ‘Now we are seven billion’ states that Population growth has both positive and negative effects. Mr. Simon is of the opinion that prices would rise in real terms, when there is an increase in population. The article states that as the world economy boomed the population growth fell. According to the UN’s population division the world population will reach 7 billion as on 31st October 2011. According to Mr. Simon, the world’s rising population was not a problem since an increase in population is also related to an increased demand for investment. The author provides the example of China, where fertility is less and one child is the policy in the nation. The author states that china’s policy is a violation of rights. Encouraging smaller families is good for economic growth as it reduces the poverty in the country, but there are large families too. Although there is a basic view that rising population creates scarcity of resources, yet population is important for the economic growth of the country. The argument presented is that smaller families create economic growth. Smaller families create economic growth because smaller families’ means less poverty and each member of the family gets all the comforts of the life. Therefore this results in better economic growth of the country. The argument presented against is that when the population decreases then it reduces the growth of the economy, which again hampers the economic growth of the country. Thus population has both positive and negative effects. Question: V: DEEP in the South Atlantic, a huge business operation is under system that Brazil’s leaders say will turn their state into an oil power by the end of this decade. If the ambitious plans of the national oil ...Download file to see next pagesRead More