Collectivism: Usually western Cultures such as Australia and New Zealand are considered highly individualistic cultures. Due to the trade liberalization, China experienced high rates of economic growth.
EP 4 However, the IS policies have been criticized by economists for various reasons.
There are three sources that put growth of a country into motion: import substitution, export and the increase in internal demand. Accessed 5 July In part, because of their success and because of high economic cost of import-substitution policies, many other countries have recently begun to adopt more outward-oriented policies.
Countries such as: South Korea, Malaysia and Singapore rejected import substitution policies resulting in superior performance in the s and s. So, what is called for is a strategy which seeks to combine the virtues of the two strategies.
In contrast, South Asian countries like India and Sri Lanka adopted more a more inward-looking strategy causing significantly lower growth rates than many East Asian countries. The only way a firm can succeed in the face of intense international competition is to produce what consumers want, at the quality they want, and at the lowest possible costs.