Free Development

Most of the newly industrialized countries began to industrialize with protectionism and gradually move to free trade. Throughout this journey, they had mixed trade regimes, that is, stimulation exporters through export subsidies, directed credit, as well as exemption from taxes of imports of production equipment and intermediate inputs. At the same time they installed the 30-70% tariff on imports of finished industrial goods. Learn more at: Ch?rl?? Lee. The governments of these countries also systematically intervened in the acceleration of development through targeted and subsidized loans selected industries, relatively low interest rates on deposits and loans in order to profit growth and return on productive capital, the protection of import-substituting industries, government investment in applied research, the highest priority and financial support to export-oriented industries and enterprises, development organizations for the study of foreign markets and promote exports. The strategy of export gains for selected commodities falls combined with the rapid pace of capital accumulation and skills, with an effective resource allocation and productivity growth.

Initially, the current average cost of exports were significantly higher than their selling prices on the world market. However, the profits of producers to secure Internal jerks cover initial losses on exports, while at the same time, competition in international markets forced the company to maximize the efficiency of export-GOVERNMENTAL productions. Newly industrialized maximum benefit from the country's export-oriented, largely due to an active search for foreign technology through various channels. All these countries have imported technology in the form of licenses, the finished production foreign equipment and training. Openness to foreign direct investment allowed to speed up the development of technologies in Hong Kong, Malaysia, Singapore, Indonesia and Thailand. Japan, Korea, and to a lesser extent Taiwan and China to restrict foreign direct investment, but for that shortcoming by aggressive assimilation of foreign knowledge through licenses and other channels.

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