Assess The Benefits Of Outward-Oriented Policy

In order for a country to have a sound GDP and economic growth they must participate in free trade such as outward-oriented policies unlike inward-oriented policies that can hinder a countries success.
Outward-oriented polices help “promote integration with the world economy” while inward-oriented polices “aim to raise living standards by avoiding interaction with other countries.” Outward-oriented policies are beneficial to a countries economic growth due to the fact their exports will be higher or equal to their amount of imports creating a surplus of net exports. When a country decides to open their economy, it allows for them to develop competitive advantages in manufacturing products used around the word allowing for their exports to

exceed their imports. Countries that typically receive the most benefits from trade are poor or developing countries because it tends to “increase the incomes of the poor in roughly the same proportion as those the population as a whole.” Countries that have exceled because they have opened their economies are India, Uganda, and Vietnam which has allowed poverty reduction and are currently experiencing a fast economic growth. More trade will allow for more jobs to be created for unskilled workers which will soon allow them to move from the poor class to the middle class. Furthermore, developing countries tend to gain more from global trade as a small percentage of GDP because their economies tend to be more heavenly protected due to their higher barriers.
To conclude, “no country in recent decades has achieved economic success, in terms of substantial increases in living standards for its people, without being open to the rest of the world.” When a country is isolated it will cause profound issues when trying to achieve a sound GDP or economic growth because their only exchange of money or conduction of bartering is within the country.