Export-oriented industrialization

Export orientation refers to the alignment (usually an industry, sometimes a country and its politics) to export. Contrary to the export orientation is the orientation of the internal market.

The export orientation is promoted by globalization and the growth of world trade. For the export orientation of a company or industry says that this new markets can be developed and can be expanded beyond the borders of the internal market also. Export-oriented enterprises and industries, however, are usually exposed to global competition and must adhere to conditions to which national policy can only limited influence.

Export orientation in developing countries

The economy (especially agriculture) in many developing countries is predominantly export oriented. This is partly a legacy of the colonial period, but due to the fact that, given the poverty of large parts of the population there is hardly a single market with purchasing power. The World Bank and the International Monetary Fund promote the export orientation in developing countries so that the debt of these countries may be paid from export earnings.

Thus so-called cash crops such as coffee, cocoa or cotton plays in agriculture in developing countries are growing a significant role. Many countries are virtually dependent on a single export commodity, such as the East African Burundi to 78 % of coffee or Guinea- Bissau in West Africa to 95% of peanuts. This can be problematic when the world market price of these products falls, and thereby whole economies are affected ( see, for example coffee crisis ). The cultivation of cash crops displaced sometimes the cultivation of staple foods (Food Crops ) for subsistence and is thus contrary to the food sovereignty of a country.

A relatively new phenomenon is the emergence of export-oriented (mostly labor-intensive ) industries in developing countries. In Central America, such industrial plants called maquilas. Many developing countries promote their settlement through tax benefits and the establishment of export processing zones. This will on the one hand jobs - particularly for poorly educated women - created, on the other hand, especially the clothing and sporting goods factories have come under criticism because of the often precarious working conditions.

• Foreign Trade