Trade policies

1)(a). It is argued that import substitution is a misguided trade policy if the intent is to promote long-term economic growth. Identify five reasons for the assertion and offer detailed explanations for each of the reasons you identified. [1 page, 30 points].

(1)(b). The consensus today is that import-substitution protectionist industrial policy has not served the developing countries’ growth ambitions well. This fact proves that policies relying on export-driven growth are the “winning ticket” for these countries. Offer sound economic thinking on why the import-substitution failed and why export-driven strategy seem to have won the day [1 page, 30 points].