SOME FORMS OF INTERNATIONAL ECONOMIC POLICY

Generally, developing countries would prefer an open economic policy, namely conducting economic relations with foreign countries. This policy will open up access to export markets for their products, as well as open source procurement of capital goods and industrial raw materials from other countries. In theory, if good management and transparent, open economic policies to accelerate economic development. International trade policy consists of policy of export promotion, import substitution policies, and industrial protection policies. 1. Export Promotion Policies In addition to generating foreign exchange, export promotion policies to train and improve the competitiveness or productivity of the economic actors dornotik. Generally, developing countries exporting the results of the primary sector (agriculture and mining) or the results that have been abandoned industrial countries which first developed. Thailand for example, is well known as a country capable of generating foreign exchange from exports of agricultural products. While Indonesia, obtaining foreign exchange from exports of textiles. Saar they tidalk again add attention to these sectors, but concentrates on knowledge-intensive industries, such as computers and sophisticated communications equipment or modern military equipment. This is because the value Rambah from the sale of these products is higher than that produced by the car industry or textiles. 2. Import Substitution Policies Import substitution policy is a policy to produce the goods imported. Its main purpose is to save foreign exchange. In Indonesia, the development of textile industry in the beginning was the substitution of imports. If the import substitution phase is exceeded, usually to the next stage to take the export promotion strategy. 3. Industrial Protection Policy Industrial protection policies generally temporary, for the purpose to protect nascent industries, until they are able to compete. If the industry has developed, the protection is revoked. The protection provided usually is the imposition of tariffs and quotas or providing goods products for other countries that may enter the domestic market.