Implementing Outward-Oriented Policies versus Inward-Oriented Policies

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Why have some countries which have pursued outward oriented policies become rich while other countries which have relied on inward oriented policies remained poor? Introduction Countries that have are implementing outward-oriented policies are becoming richer while the ones that are implementing inward-oriented policies are becoming poorer. First of all, we must question the fact that how is that even possible and is it true that inward-oriented policies are always bound to fail? Is there any way that this system can be changed? In order to answer these questions, we must first understand what outward-oriented and inward oriented policies are. Inward-oriented policies are those policies that are used to encourage an economical entity through self-sufficiency. Such policies do not encourage exports as a result of which, growth is limited and ultimately, the economy can become dependent on foreign markets because of these policies. However, one of the major advantages of inward-oriented policies is that meeting local needs becomes easier as such policies do not foster internal markets. But that is also reliant on the kind of policies that are being implemented. Outward-oriented policies are those policies which encourage and promote exports for foreign buyers. This means that all the goods/specialties of a country are sold and even borrowed by other countries as a result of which, money comes from a third party. The profit is hence increased by a noticeably large margin

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