Government policy makers in both East Asia and Latin America faced two models for stimulating industrial production: Import-substituting industrialization (ISI)and export-oriented industrialization (EOI).Which of the following most accurately describes their policies?

Question

Quizplus · Accepted Answer

Both East Asia and Latin America initially adopted ISI policies to promote industrial production, protecting domestic industries from foreign competition through tariffs and subsidies. However, while East Asia (including Japan, South Korea, Taiwan, and Singapore) quickly transitioned to EOI in the 1960s and 1970s, focusing on exporting manufactured goods to developed countries, Latin American countries (such as Brazil, Mexico, and Argentina) continued with ISI policies until the debt crisis of the 1980s. Latin America began to adopt EOI policies in the 1990s, but by then, East Asian economies had already become global manufacturing powerhouses.

Government Policy Makers in Both East Asia and Latin America