Understanding Latin Americas International and Economic...

Prior to analyzing the ISI (Import Substitution Industrialization) model, it’s benefits as well as its shortcomings, a small introduction of how it came to be and why must be provided. As a product of the 1930s economic crisis and wear and tear of the liberal model, ISI appears in Latin America as another economic option, proposed by ECLA (Economic Commission for Latin America, dependent of the UN) as a means of bringing Latin America out of stagnation and work towards industrialization to eliminate its dependency on agriculture which was seen as vulnerable. There are two critical ways in which this model must be examined, theoretically as well as its concrete outcomes and policy implications within Latin American states. By looking at†¦show more content†¦Therefore, it was believed that â€Å"Latin America instead of following outward-looking development path should instead pursue an ISI policy as the centre-piece for a new inward-directed development strategy† (Kay 5), following the beginning footsteps of the developed states. Although its main goal was to strengthen the national economy to better compete in the global market, ISI has had very controversial results. Positively speaking, it has resulted in a decrease in imports, which has favoured certain national industries such as electric materials for construction, textiles, chemicals, etc., the nationalization of natural resources, betterment of term of trade, state intervention in economics (which led to the development of education, health and employment), strengthening of social organizations, but most importantly, the consolidation of the middle class. On a negative note, these nations led to become greatly dependent on technology, there was an increase of external capital control over developed areas, an under qualified labour force for factory jobs, increase in prices of manufactured goods and inflation, migration from rural to urban areas and as a result an increase in social problems, and finally, the industrial sector did not bother to conquer external markets which essentially contradicted the whole purpose of ISI. For these reasons ISI was seen as aShow MoreRelatedThe Cause of Globalization18688 Words   |  75 PagesGarrett / CAUSES OF GLOBALIZATION COMPARATIVE POLITICAL STUDIES / August-September 2000 The most important causes of globalization differ among the three major components of international market integration: trade, multinational production, and international finance. The information technology revolution has made it very difficult for governments to control cross-border capital movements, even if they have political incentives to do so. Governments can still restrict the multinationalization ofRead MoreEssay on Porters Diamond Model29755 Words   |  120 PagesASSESSING THE POWER OF PORTERS DIAMOND MODEL IN THE AUTOMOBILE INDUSTRY IN MEXICO AFTER TEN YEARS OF NAFTA SALVADOR BARRAGAN Master in Business Administration, IPADE Business School, 1996 BSc in Industrial Engineering, Universidad Panamericana, 1994 A Research Project Submitted to the School of Graduate Studies of the University of Lethbridge in Partial Fulfilment of the Requirements for the Degree MASTER OF SCIENCE IN MANAGEMENT Faculty of Management University of Lethbridge LETHBRIDGERead MoreOrganisational Theory230255 Words   |  922 Pagesorganization theory the book increases the understanding of a field that in recent years has become ever more fragmented. Organization theory is central to managing, organizing and reflecting on both formal and informal structures, and in this respect you will find this book timely, interesting and valuable. Peter Holdt Christensen, Associate Professor, Copenhagen Business School, Denmark McAuley et al.’s book is thought-provoking, witty and highly relevant for understanding contemporary organizational dilemmasRead MoreManagement Course: Mba−10 General Management215330 Words   |  862 PagesMBA Program McGraw-Hill/Irwin abc McGraw−Hill Primis ISBN: 0−390−58539−4 Text: Effective Behavior in Organizations, Seventh Edition Cohen Harvard Business Review Finance Articles The Power of Management Capital Feigenbaum−Feigenbaum International Management, Sixth Edition Hodgetts−Luthans−Doh Contemporary Management, Fourth Edition Jones−George Driving Shareholder Value Morin−Jarrell Leadership, Fifth Edition Hughes−Ginnett−Curphy The Art of M A: Merger/Acquisitions/Buyout Guide, Third