Introverted Economy And Export-Oriented Economy

The introverted economy refers to the economy of the country that implements the policy of "import substitution".

That is to say, developing countries give priority to the development of domestic manufactured goods and replace domestic imports with domestic products to drive the development of other sectors of the economy.

By importing quotas and raising tariffs, the State supports the development of new industries and gets rid of dependence on imports.

In addition, the domestic market demand oriented economy is also known as an introverted economy.

There are also corresponding policies, such as reducing income tax in order to increase personal consumption demand, reducing corporate tax, lowering interest rates and developing public welfare undertakings to increase investment in equipment.

The export-oriented economy is the symmetry of the "introverted economy", which refers to the economic system of a country or a region closely related to the international market.

Export-oriented economy is divided into two broad sense and narrow sense.

The generalized export-oriented economy refers to the economic exchange activities in the world in terms of trade, capital, technology and labor force.

The narrow sense of export-oriented economy refers to the economic activities guided by the international market and the main goal of foreign exchange earning through exports.

In 80s, the export-oriented economy, which was vigorously developed in China, was a narrow range of economic activities. Its basic form was the combination of import substitution and export substitution, and the export substitution was the main form. Its capital utilization was mainly based on foreign aid, and its products were mainly exported. The industrial structure was mainly industrial.