1, By considering the current Ethiopian economy status wich trade policy strategy (import substitution or export promotion) is beneficial or do you think that pursuing both of them are beneficial. Comment your suggestion.
Both import substitution and export promotion strategies can be beneficial for the Ethiopian economy, however, it ultimately depends on the specific economic conditions and the country's long-term goals.
Currently, Ethiopia has been pursuing a strategy of import substitution in order to reduce its reliance on imports and promote domestic production. This can help to boost local industries, create jobs, and reduce the trade deficit. However, in the long run, export promotion can also be crucial for economic growth as it can help to increase foreign exchange earnings, attract foreign investment, and promote technological advancements.
Therefore, a combination of both import substitution and export promotion strategies may be the most beneficial for the Ethiopian economy. This would allow the country to strengthen its domestic industries while also tapping into international markets to increase its export earnings. By diversifying its trade policy strategies, Ethiopia can build a more resilient and sustainable economy in the long term.