Discriminates against potential export industries. Foregoes advantages of specialization and trade. Export-Led Growth Developed as a result of failure of import substitution. Specialize where there is a comparative advantage. Industrialization the natural outcome of development.
Advantages Takes advantage of comparative advantages.
Takes advantage of economies of scale. Free trade forces domestic industry to be efficient. Disadvantages Relies on industrialized nations willingness to import manufactured goods. South Korea a good example. Eliminated barriers on inported inputs.