Essay On Outward-Oriented Policies Vs. Inward-Oriented Policies

A reality that the world faces now is that not all countries are economically successful. Living standards are not equal and economic productivity varies depending on several factors. Why is this so? Because a country's economic stability depends largely on what economic policies the government institutes in the country.
Countries such as the United States, China, Singapore, and South Korea all pursued outward-oriented policies that focused on international trade rather than limiting trade within their regions. What is the common denominator among them? They are all rich. Instituting lower tariffs and lifting trade restrictions, the countries benefitted by exporting their goods and services and importing from other countries whatever goods their respective countries cannot produce. This results to higher productivity and better living conditions for the citizens.
On the other hand, because poorer nations opt to limit their trading interactions within the country, they miss opportunities of increasing their productivity as well as possible increase in their nation's income. As a result, nations that follow inward-oriented policies do not realize their country's full potential in terms of exporting and importing goods and services.
The richer nations also took advantage of their seaports to trade with nearby countries, which was a problem for land-docked countries. It was easier for them to trade and increase the amount of goods to produce because the demand was not limited to in-house consumption, but of other countries as well. Had poorer nations opened their minds to open trade and lifted trade restrictions, their location would not be a problem, as in the case of countries in the Middle East.
Therefore, because a country's economic policy determines its economic stability and success, the best way to achieve this is to follow outward-oriented policies rather than inward-oriented policies.