Discuss the drawbacks of primary-sector-intensive outward-looking trade policies. How did the Prebisch-Singer hypothesis critique such policies and support the implementation of import substitution industrialization (ISI) strategies? Also discuss the similarities and differences between export-oriented industrialization strategies versus ISI.

Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter19: International Finance And The Foreign Exchange Market
Section: Chapter Questions
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Discuss the drawbacks of primary-sector-intensive outward-looking trade policies. How did
the Prebisch-Singer hypothesis critique such policies and support the implementation of import
substitution industrialization (ISI) strategies? Also discuss the similarities and differences
between export-oriented industrialization strategies versus ISI. Which of these policies would be
assisted by an undervalued exchange rate? Explain .

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