Answer to Question #261682 in Economics for Sahba

Question

What is the meaning of industrialization policies? Name and explain an argument for and against these policies

Answer 1

Industrialization policy is defined as the strategic effort by the state to encourage economic transformation, i.e. the shift from lower to higher productivity activities, between or within sectors.

The growth of industries typically results in the large-scale production of goods that become available to the consumer at much cheaper rates.

Industrialization contributes to negative externalities such as environmental pollution. The separation of capital and labor creates a disparity in incomes between laborers and those who control capital resources.