Neo-Classical Theory Argues that market is responsible for growth. Demand then supply...economy is based on market based outcomes. Adam Smith with this theory has its foundations in a "supply creats its own demand" principle. For this reason it emphasizes the monopolistic competition where each nation specializes in ceratain products to benefit greater from the economies of scale. It argues that if industry is restricted to the home market, it will be high cost producer …
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showed last 75 words of 872 total
…had to find a way out. Export based strategies introduced . 14) Symbiosis state-business relations Park had to depend on Chaebol's economic performance to gain more support because of his unstable ligitiamcy. Dependence of Chaebol on the state's for financial support. Made both really want to grow. 16)Dual dependency structure. Korea export intermediate material from japan to produce goods to export to the US. (what's the relationship between Japan and the US then? Why is it triangular?) 17) 19)