Abstract
On the whole, this paper gives an analysis on the impact of globalization on Sri Lanka and further examines the industrialization experience in Sri Lanka following the market-oriented policy transformation instigated in 1977, while emphasizing on the establishment of trade Policies including Foreign-Direct-Investments (FDI). Moreover, this paper recognizes that policy alterations have positively played a key role in converting a primary-product-exporting economy to an economy which manufactures & exports value-added goods.
The paper discusses different phases of Government policy towards international trade & private investment in Sri Lanka since the independence in 1948, with the objective of emphasizing the positive impact of
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Athukorala and Jayasuriya (2004, p. 5) states that the government of Sri Lanka back then, determined on a broad trade liberalization process in 1977 as a rejoinder to the depressing economic result of an inward-looking policy. Furthermore, by doing so Sri Lanka became the foremost country to establish a government policy of trade liberalization in the South Asian region as well.
At the outset, a number of stern controls were eliminated for all investors. According to International Monetary Fund (1996, p. 20-45) these included reduction of tariff and non-tariff trade barriers, amalgamation of the exchange rate, modification of administered prices, restructuring of export taxes, liberalization of interest rates and diminished restrictions on pricing and investment by the private sector.
In addition, during this phase, Sri Lanka experienced drastic diminution of restrictions on foreign investment with new trade incentives for export-oriented foreign investments under an attractive Free Trade Zone (FTZ) which is also referred to as an Export Processing Zone (EPZ) According to Kelegama (2002, p. 1488) private investments responded well to these reforms, increasing by an average of 13% a year within four years.
3.0 Textile & Apparel Industry
3.1 Textile & Apparel Industry on a Global Setting
Following World War II, economic policies were marked by two major trends. On one hand, industrialized economies gradually removed trade barriers. These policies were based on the idea that free trade is not only a factor for economic prosperity of nations, but also for the promotion of peace. On the other hand, economic policies of many developing countries with the exception of few countries in Southeast Asia have been conditioned by the belief that the key to development rests in the establishment of a powerful manufacturing sector, and that the best way to create such an area was to protect local industries from international competition through substitution imports policies.
Globalization over the past twenty has become an issue in many countries. This industrialization of second and third world countries by Western Civilization creates many opportunities for the inhabitants. Not only does it expand trading markets, but also promotes productivity and efficiency; thus improving the country and integrating it into the industrial world. This process not only benefits third world counties, but also industrialized nations by allowing them to export goods to the developing world and increase their profit margin.
The Industrialization impacted the United States in good ways and in bad ways. The economic part of the Industrialization helped the economy grow much larger than it was. It was a bad thing for the social life because the nativists did not like how immigrants were coming over for jobs. Also about how there were three main classes. The cultural part was when new languages and new religions came into the country. These three things, economic, social, and cultural had a impact on the United States.
Trade policy continues to be an important aspect in globalization at least in some of the lower income developing countries. Widespread use of computers, faxes and mobile phones, introduction of the internet and e-commerce, are quicker and cheaper means of transportation. In some cases offered in opportunities to developing countries, but in other cases between global firms and traditional industries globalization opened up other opportunities for developing countries to create jobs and expand exports. In practice, many developing countries competing for foreign investors offered longer tax holidays, costly subsidies, and various incentives for multinationals. The competition among developing nations reduced positive net effects of globalization or, furthermore, delayed them.
For SA, globalisation has led to rapid growth in trade, driving economic growth. Trade has grown from 45% of Gross Domestic Product (GDP) to 74% between 1983 and 2008, reflecting the growing trade liberalisation of SA. Particularly, the Uruguay Round of multilateral
A widespread view developed among economists and policymakers in the early post World War II period Import substitution policies were popular amongst developing economies was that the best way for these countries to develop more rapidly was to stimulate industrialisation by adopting import-substitution policies. At the time, there seemed to be a number of good reasons for such an approach. The policy makers of the newly independent nations were keenly aware not only that most of the countries from whom they obtained independence had much higher per capita income levels and were much more industrialised but that their former rulers had imposed economic policies in the past which discouraged industrialisation within the new nations and industrialisation seemed to offer the possibility of achieving faster growth, higher per capita income levels and the economic and military power needed for national security. An economically sensible way of achieving industrialisation seemed to be to restrict imports of manufactured goods for which there already was a domestic demand in order both to shift this demand toward domestic producers and permit the use of the country’s primary- product export earnings to import the capital goods needed for industrialisation. There also appeared to be a number of examples where high levels of import protection contributed positively to industrialisation. Although Great Britain had adopted a policy of free trade during its period of rapid growth in the
Targets of production were more or less reached in the case of cotton textiles, sugar, vegetable oils, cement, paper, soda ash, caustic soda, rayon, electrical transformers, bicycles, sewing machines and petroleum refining.
In this assignment, the author will analyze, and identify differences between the basic and base concept of international trade theories. The author will examine and critically assess the concept of international trade. This paper agrees with the economist that international trade is the interdependence of nations in terms of trade, cultural diffusion, and economic interdependency. International business trade theories are basically different theories with their concept of trade how they explain international trade. The concept of majority of economist believe that, trade is about exchanging goods and services between two people or countries within the world. People do trade because they believe that, from the exchange of goods and service, both can benefit from each other resources. They need the goods and services which they are exchanged. Though at the surface, this may sound very simple, there is a great deal of theory, policy, and business strategy that constitutes international trade. The author will talk about the different trade theories that have developed over the past century and which are mine. Most applicable in today 's business world. In addition, the author will explore the issues which impact international trade and how businesses and governments use these issues to their respective benefits to promote their international trade.
This article shows that international trade can have practical limitations. The textbook explains that one of these limitations is the fact that while two countries can both benefit by trading with each other, excessive trade can
Industrialization Research Thesis: Lynn MacKay's thesis to her argument is that the standard of living during the period of industrialization was closely tied to social and political ramifications between 1780 and 1850 and contemporary opinion concerning the impact of industrialization, and can be clearly seen through the arguments of a number of historians. The government of the time tried to lay back and let the period of industrialization shape the country by withdrawing from certain roles that they played in societal life. q Withdrew from regulation of wages and apprenticeships in 1813. o
Jamaica was one country in the Caribbean that were lucky to benefit from this model in the 1950s and 1960s. It had experienced high foreign direct investment (FDI) and significant growth in 1950-1965. Girvan (1975) argues however that the FDI led to growth did not help the economy to become more self-sufficient but rather made it more
Considering occurrences that followed the Civil War, the paper examines how industrialization affected the US between the years of 1865 and 1920 on social, economic and political aspects.
During the industrial revolution in England, there was a mass movement of people from rural areas to booming cities where small, factory towns became industrialized metropolises almost overnight, which created a large gap between the rich and the poor. This phenomenon was similar to what happened to the city of Bombay. This income gap in Bombay exists because of the lack of priority to education and healthcare for all of India during British colonialism. Because of this, only the richest in India’s society reap the benefits of industrialization and globalization. While the government has tried to implement some welfare reforms in India, it has been undermined by the corruption in the government because the rich bribe politicians to keep society the way it is.
All these in totality meant greater inclusion of the developing countries in international trade, and a turnabout in their
Modern day government policies of import substituting industrialization can foster industrialization and development by using the powers of the state. This happens through the protection of domestic industries from international competition by imposing tariffs, quotas, and government subsidies (Ray, 657-658). By doing so, states could create artificial competition to industrialize, thus creating