One way to both discipline inefficient firms and expand the market for goods is to encourage the country's large firms to export. Not only are firms forced to make attractive cost-competitive products that can win market share internationally, but the larger international markets offer them the possibility of scale economies. Moreover, because they are no longer constrained by the size of the domestic market, they can pick the products for which they have the greatest comparative advantage.
key part of managed model is growth through exports to large economies that can't compete as well on low labor costs. can allow developing nations to pick and choose industries that offer greatest comparative advantage (e.g. ready access to local raw materials)
