export-driven economy?? what does that mean !!?

Question

Does it meant that hte country's economic system is failing =)

Answer 1

Under developed. usually based on raw resource extraction. Like most of the third world, Africa and Canada. The fetchers of wood and the haulers of water. Economies can be fairly wealthy. Like many middle Eastern states and Alberta Canada based on oil extraction but they will seldom develop other economic activity. Reliance on one industry, and that industry on a depleting resource makes for a very brittle economy. Economic collapse can occur even if the resource is still being extracted. All it takes is a minor price fluctuation. If you look at Forestry world wide and in Canada you see similar problems. Canada by concentrating on being an export economy has become a wealthy but actively underdeveloped economy. Most of these export economy countries can be seen just from maps like google earth. Look at the road patterns. export economies have all roads leading from extraction points to ports. Developed economies have networks of roads linking many sites inside the country. Modern transportion includes pipelines, the same feature applies.

Answer 2

Export Economy Definition

Answer 3

An export-driven economy is one where export-earnings accrue a major share of the GDP.This earning is also reinvested in industries that are meant for producing output for export products. Therefore, an export-driven economy is effected by world conditions and other international aspects more than an import-substituting economy. No economy can be totally export oriented, but in the present era of globalization, a condusive mix of export and import actually keeps the economy healthy.

Answer 4

Export-driven economy is one where exports are relatively large relative to GDP. In and of itself export orientation is neither good nor bad; a lot depends on how diversified the exports are. If exports are poorly diversified (say, a country exports only one commodity or a few related commodities), the country is exposed to price shocks (a drop in the price of the single export can seriously hurt employment and national income). If, however, exports are well-diversified (and consist mostly of manufactures and services, rather than minerals and agricultural commodities), price shocks are not as important.

The ultimate export-driven economies of today are Luxembourg (which has world's highest GDP per capital) and Malaysia (not very wealthy by any standard, but quickly improving), where both exports and imports substantially exceed GDP.

Answer 5

Export-driven economy means that most of the wealth of that country is earned because they make and export things that the rest of the world wants and imports. They usually export more than they import and therefore have a "favorable" balance of trade. The BRIC countries (Brazil, Russia, India and China) are some of the fastest growing countries in the world because they export things that others want. Go to the World Trade Organization for future details www.wto.org

Answer 6

It means your exporting for poducts for hard currency to build factories, highways, communication networks

Export driven reduce internal comumption, and tries to rise in wages below inflation, but it bring more graudal increase in purchasing power. The disadvantage of the policy it impairs progess on modern finincal, legal systems. South Korea policy for three decades was grow the economy the more fat and inefficent the factory the better because technical knowhow will trickle down. The economy of China is making the currency lower in value to act as a hidden traiff while other countries use traiffs to help producers export, or use for internal growth. A very poor country would benefit from internal growth exporting, and making rules encourage joint ventures to teach basic manfacturing knowhow. After the economy become more middle income the policy is not as effective because then you need mordern finanical , legal, politcal systems to moderinize the factories, finacing, and other sectors of the economy.

Answer 7

It means that exports make up a significant amount of their gross domestic product.

Japan, China and the 4 Asian Tiger economies used exports to increase their production while protecting their economy with tariffs and other barriers when they were starting to develop.

It also should mean that they have a positive trade balance, where the value of their exported goods outweigh the value of their imported goods.

Y=C+I+G+NX (GDP= consumption + investment + government expenditure + net exports (exports - imports))

Peace

Answer 8

It means that the country's economy is heavily reliant on it's exports for growth. Export is the major component that provides the fuel for the nation's economy to expand.. Without exports leading the way, a country's prosperity would be non-existent. Consider the case of Japan. They have no natural resources to speak of, but since after World War II, their ability to absorb new technology and adapt, apply and innovate has led to products that is now in great demand worldwide, from cameras to VCRs to cars and a host of other product that has made them an economic power second only to the USA. Remember that these products are mostly of AMERICAN origin. But their ability to mass produce goods in high demand the world over has made their economy one of the most export driven in the world. Another example is the Oil producing countries, whose economies depend mainly on oil for growth. Remove the oil, and you see what I mean. Of lesser impact but not of value are developing agricultural based economies that rely on exports of raw materials and agricultural products to support their economies. Rule of thumb: the higher the percentage contribution of exports to the country's Gross National product (GNP) , the more export dependent (or driven) that country is..

Answer 9

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export-driven economy?? what does that mean !!?

Answer 10

export driven economy means those economies which are based on exporting the goods on a large scale which are produced in their country and not based on the domestic demands of the goods. for example japan, china, south korea, etc