An import substitution approach is inherently interventionist and protective of domestic markets.  This would be achieved by imposing prohibitively high tariffs on imported produce and then subsidising their own domestic industries so that they could replace them. 

As the video highlights, the policy can protect local jobs, protect local culture and protect an LEDC from the adverse impacts of MNCs.

The policy is likely to lead to domestic inefficiency (because local industries are not exposed to foreign competition) and as such may only create jobs in the short term.  It also means that the nation is unlikely to benefit from the gains from comparative advantage and inflation is likely to be higher in the country.  Other nations are likely to respond to the policy by employing their own tariffs against the nations exports in retaliation.

Many parts of Latin America, Africa and Asia have employed the policy at different times.

a trade and economic policy based on prioritising the export of goods for which the nation has a comparative advantage.

Liberalised trade and capital policies, a floating exchange rate, deregulation and investment in key infrastructure required to deliver growth.

As the video highlights, the policy may allow an economy to break the poverty cycle. Many LEDCs are stuck in a perpetual cycle of low quality products, low skill levels, lack of investment e.t.c.  Any business that is able to produce higher quality products will find it almost impossible to sell those goods and services domestically.

Led to trade barriers among Developed nations whose own industries were threatened by imports from low wage economies.  The policy also meant an increasing share of the economy was controlled by MNCs and lastly the policy led to significant income inequalities.

With exports being the key driver of economic growth then the ability to produce high quality products for export markets was essential.  This meant competing with industrialised nations on quality, as well as providing the goods at lower costs.

While export led growth has led to some very exceptional growth rates in those nations that have adopted the policy, such a policy will create losers as well as winners.  Some, perhaps the old, unskilled or geographically immobile can easily be left behind by such a policy.

Japan, South Korea, Singapore and Taiwan.

When an economy effectively skips the secondary phase of development and moves directly from being an agriculturally based economy to a service based one.

Manufactured jobs are easier to create export growth, improvements to technology and greater productivity through investments in human and technical sectors.

Automation has reduced the need for low wage workers which has removed some of the previous comparative advantage that ambitious low wage economies once had.

Opinion is mixed, some economists are particularly negative, believing that the chances of the next ambitious LEDC being the next South Korea have effectively gone.  On the other hand the video also argues some nations may be able to benefit from the access to cheap technological goods and be able to develop quickly as a result.  An example fo this is how cell phone coverage across Africa has played a role in connecting that continent.

Billion of $s in export revenue through tourism and the creation of masses of new jobs and improvements to infrastructure.

Unlike the production of primary commodities, which many LEDCs have used as a development tool, tourism is highly income elastic.  This allows an LEDC to take advantage of rising income levels and increased demand for new exotic holiday destinations.  

A nation wishing to attract large number of tourists must ensure that the nation is equipped with adequate air, road and communications infrastructure.  Such improvements, built for the tourist sector, can then be used by local residents.

Tourists drive up prices for local customers and can destroy / retard areas of natural beauty as the video highlights, hence the focus by some nations on ethical / sustainable tourism.

Tourism can be an unstable, if highly profitable, source of income due to changing external circumstances.  The once popular beaches of Turkey and north Africa, for example are now virtually empty due to security fears in the region. 

The growth in tourist numbers is 26.9% while the growth in revenue is 44.17%.

A rise in overseas visitors to the country will increase both LRAS as well as AD.  In other words both the productive capacity of the nation as well as overall economic activity will increase.

The benefits of tourism, as a source of economic growth / development include:

• tourism is highly income elastic which, unlike many other goods and services where LEDCs may have a comparative advantage, allows the country to take advantage of rising income levels
• increased job creation as the industry is labour intensive
• a valuable source of foreign currency which can then be used to import much needed capital, required for development
• developing a tourist industry requires investments in infrastructure which can then be used by local residents as well as visitors to the island.

The disadvantages of tourism as a development strategy include:

• a significant proportion of revenue received goes to overseas travel agents and the owners of hotels who may also live overseas 
• tourists will spend a large proportion of their holiday money on imported goods and services
• negative externalities associated with tourism, e.g. the costs of overcrowded beaches or areas of natural beauty 
• additional pressure on local infrastructure
• tourist numbers can also be an unstable due to changing external circumstances.