_____ advocates that countries should simultaneously encourage exports and discourage imports.,

Trade is a huge part of the world’s economy. In fact, trade accounts for more than half of global GDP. It is easy to see why international trade has become so important in today’s society. However, it can be difficult to understand how and why we got here as quickly as we did. Today, __ will explore what led to the rise in importance of international trade and explain how countries should approach both encouraging exports and discouraging imports equally if they want their economies to grow successfully. ** * I am exploring this topic because there are those who argue that export-led growth is no longer applicable or sustainable., * This may seem like common sense but let me show you my argument! * The era following World War II was a time of intense globalization and international trade. This led to more than 50% of the global economy being linked to foreign markets, which is by far higher than at any other point in history., * The structure that emerged during this era can be seen clearly today as it has shaped our modern-day economic system * __ will provide some examples below from countries like China and Germany who have accomplished successful export-led growth in recent years despite their different starting points.: * For example, take China’s situation. In 1980s, they were primarily an agricultural society but over the next few decades became one of the world’s largest exporters because its government encouraged exports while discouraging imports. As a result, Chinese incomes increased considerably., * Germany, on the other hand, grew its way into an industrial powerhouse during the late 19th century because it encouraged exports and discouraged imports. * __ will now explore why this is a successful model for economic growth., * The first idea to understand about export-led growth is that countries should simultaneously encourage exports and discourage imports. If they do not provide their own goods, then where are they going to get what they need? This sentiment can be seen in China’s trade policy after World War II: They were one of the few nations with excess manufacturing capacity so when foreign demand increased as Europe recovered from war, China was able to produce more than enough products at low cost., * Another reason that export-sustained economies are beneficial is because