JOEL SENTSHO (n. d), “export-led growth (ELG) is an economic development strategy in which export, and foreign trade in general play a central role in a country’s economic growth and development” (Dr. SENTSHO, n. d, p.2). Economic growth of a country…
ce is mainly determined by two (connected) factors: its exchange rate and its growth rate in relation to those of its trading partners” (A special report on Americas economy: Export or die 2010). In other words, the currency value and the export growths are the major determinants of the economic growth of a country. This paper evaluates the importance of export of manufactured goods in sustaining economic growth of a country.
China’s policies helped them to grow at the rate of 7%–8% per year which is sufficient enough to produce 15 million new jobs a year (THE “CHINA PRICE” AND WEAPONS OF MASS PRODUCTION, n. d, p.1). China is one of the prominent exporting countries in the world which exploited the possibilities of export of manufactured goods judiciously for their economic growth. In fact they taught the external world new export oriented economic lessons. While most of the countries tried to sell their products for maximum possible prices in global market, China adopted a different strategy of selling their products for maximum cheaper prices. Cheaper prices made Chinese products favorite in global market and they were able to generate big volumes of business in the global market. Bulk production helped China to sell their products for cheaper prices in global market. Mass production also helped China to reduce their unemployment problems up to certain extent. While most of the other countries struggled to boost their economy through export of manufactured goods, China not only maintained a steady economic growth through export of manufactured goods, but also succeeded in reducing unemployment problems.
It is not easy for other countries to follow the path of China blindly. For example, America’s manufacturing base is not much active currently because of the stiff competition from the Chinese products. Even American consumers became the fan of Chinese products because of the cheaper price and better quality compared to the American products. Under ...
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