Differentiate between industrializing economies and industrial economies. Give a few examples of each

Question

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Answer 1

Industrializing economies are also known as emerging economies. In an emerging economy, fast growth in manufacturing results in rapid overall economic growth. Examples include the BRIC countries — Brazil, Russia, India, and China. As manufacturing increases, the country needs more imports of raw textile materials, steel, and heavy machinery, and fewer imports of finished textiles, paper products, and automobiles. Industrialization typically creates a new rich class and a growing middle class, both demanding new types of imported goods.

Industrial economies, on the other hand, are major exporters of manufactured goods, services, and investment funds. They trade goods among themselves and also export them to other types of economies for raw materials and semi-finished goods. The varied manufacturing activities of these industrial nations and their large middle class make them rich markets for all sorts of goods. Examples include the United States, Japan, and Norway.