Many theories Generally among; Market planning or Central planning Agglomeration or Dispersion Import Substitution or Export Promotion Basic Needs or Megaproject As industrialization evolves, change strategies to suit national and international conditions. Mix strategies in their development plan.

Market Planning and Central Planning Choose a market system, a centrally planned system, or some combination of the two.

Market Planning Manufacturers decide; what to produce, how much to produce, where and how much to sell based on market (consumer) demand.

Central Planning Manufacturers told what to produce, how much to produce, and where and how much to sell by a planning board. Government decisions based on capabilities and needs of national economy.

Few countries are entirely market driven or centrally planned. Majority use a combination of market and central planning. Protect the interests of the nation’s economy while maximizing employment.

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atalogue/catalogue.asp?isbn= economies-the-maquiladora-export- landscape/ Agglomeration and Dispersion

Agglomeration Concentration (agglomeration) of industries reduces infrastructure and labour costs so that investment is attracted. Rapid growth in some chosen area usually capital cities and/or port areas. Rural poor attracted and urbanization occurs which may cause overcrowding, pollution, high prices, declining quality of life (Mexico City?). Eventually problems outweigh benefits and dispersion becomes favoured.

Dispersion Spread industrial development throughout the non- core areas of the nation, the periphery. Equal distribution of infrastructure services, transportation, education and others which slows progress. Allows the periphery to provide jobs and raise living standards, limits flow of migrants to cities.

Import Substitution and Export Promotion

Import Substitution Replace imported goods with local products. Low technology products to start since labour and raw materials are inexpensive. Commonly: clothing, footwear, and household goods. Growth occurs as population learns labour and management skills, and entrepreneurship. Trade barriers protect from foreign competition but…to much protection discourages growth because little incentive to improve manufacturing techniques.

Export Promotion Encourages goods for international sale. Export promotion generally fares better than substitution. Risky since exports are vulnerable to international markets. A growing US buys goods from abroad. During recession it buys fewer goods.

Basic Needs and Megaprojects

Basic Needs Industries serve local population creating jobs, housing, clothing, domestic products. Local population receives training basic to their existence. Creates a productive, independent, literate, and employed population, but requires long-term commitment.

Megaprojects Hydro-electricity dams, transportation networks, communication systems etc… Such infrastructure projects meet national need. Require a large population, and some less populated countries now own underused facilities. Jobs often only benefit small group and income distribution becomes more unbalanced.