What is an export-oriented economy? What's the difference between it and an inward-looking economy?

1. export-oriented economy is also called "export-oriented economy". An economic type that promotes economic development by giving priority to the production of export products, actively entering the international market, and participating in international division of labor and international exchanges. It aims to promote the development of export industry and give more preferential treatment and support to export products in exchange rate, tax system and credit.

2, through expanding exports, increase foreign exchange income, and then introduce much-needed technology and equipment, promote the development of domestic economy. It has a strong ability to earn foreign exchange through export, can use foreign capital on a large scale, introduce, absorb and digest foreign advanced technology and management methods, and participate in international labor cooperation on a large scale.

3. Guided by international market demand; The establishment of economic structure is based on the basic content and development of the international economy and must be able to participate in the international division of labor; Have a relatively sound market economic order and economic organization structure system; The foreign trade system adopts a management system based on economic means.

Second, the difference

1, theoretical basis

Based on the theory of trade protectionism, the inward-looking economy believes that domestic national industries must be protected to promote the development of domestic industries. These countries usually take measures to overvalue their currencies and set up tariff and non-tariff barriers to prevent foreign goods from entering their markets.

Based on the theory of comparative advantage, export-oriented economy holds that economic development depends on the optimal allocation of resources in the international scope and the advantages of developing domestic economy. At the same time, it is also acknowledged that the outward development of economy is the inevitable trend of productivity development.

2. Development method

Based on the domestic economic environment, the introverted economy strives to develop its own economy through the allocation and circulation of domestic resources and other production factors. Export-oriented economy is to make full use of foreign resources and production factors through the international market, give full play to its own resource advantages, and adopt an export-oriented development mode to make its own economy seek development in international economic competition.

3. Trade function

The inward-looking economy is basically not limited by the law of international value, because it separates the domestic market from the international market. Foreign trade is limited to the introduction of some domestic advanced equipment and raw materials, and export is only for the purpose of exchanging foreign exchange, which has the nature of exchanging needed goods and adjusting surplus and deficiency. Export-oriented economy is guided by expanding exports and drives the development of the whole national economy.

So foreign trade plays a leading role. Through foreign trade, our competitive goods will enter the international market and realize the proliferation of goods in the international market.

4. Conversion mechanism

In the introverted economic environment, the upgrading of products depends entirely on the guidance of the domestic market, so its transformation ability is extremely low. Export-oriented economy must adjust its industrial structure according to the changes in international market demand. In order to occupy the international market, it must participate in the circular mechanism of international industrial transformation, which promotes the continuous adjustment of domestic industrial structure to adapt to the frequent changes and development of commodity structure in the international market.

5. Code of Conduct

Under the inward-looking economic model, the determination of government institutions and functions is mainly based on the specific domestic political system, economic system and economic development level. The organization and function of export-oriented economic model must conform to international practice, be institutionalized, standardized and legalized, meet the needs of international division of labor and international competition, and operate efficiently.

The enterprise behavior of export-oriented economy must be managed in accordance with international practices and international common standards, guided by the international market, and actively play a leading role in international division of labor and international competition.

Extended data:

Promoting Changsha s export-oriented economy and speeding up its development;

1, and will make every effort to provide better service guarantee for the development of Changsha Customs. Hu Zhongxiong emphasized that in order to achieve high-quality development, Changsha must focus on filling the shortcomings in the development of export-oriented economy.

2. Hu Zhongxiong pointed out that Changsha will accelerate its development through foreign investment, foreign trade and foreign trade, and strive to achieve an average annual growth of about 40% in the city's foreign trade by 2020, with the total import and export volume exceeding 40 billion US dollars. Further focus on key links, focusing on platforms, channels, enterprises and policies.

3. Fully open air, water and land channels, give full play to the roles of Hunan-Europe Express, Hunan-Guangdong-Hong Kong Express and Xianing Port, and actively connect Chenglingji Port with Shanghai Port; Enlarge and strengthen the existing import and export enterprises, introduce more import and export enterprises with leading and exemplary functions, make full use of the existing incentive and compensation policies, and actively introduce corresponding support policies to accelerate the development of Changsha's export-oriented economy.

References:

Baidu Encyclopedia-Export-oriented Economy