Final answer:
Outward-oriented trade policies are broadly considered more beneficial for economic growth as they promote specialization and efficiency, maximizing gains from trade. However, the best approach may vary based on a country's specific context, and smaller countries often benefit more from international trade due to limited internal markets.
Step-by-step explanation:
Whether inward-oriented or outward-oriented trade is more preferable for economic growth has been a topic of considerable debate among economists. Inward-oriented trade policies, also known as import substitution strategies, focus on developing domestic industries and reducing dependency on imports. Conversely, outward-oriented trade policies, often referred to as export promotion strategies, encourage participation in international trade to foster growth through specialization based on comparative advantage.
The common consensus among economists is that outward-oriented trade is more beneficial for economic growth. This mindset is based on the idea that engaging in trade allows countries to specialize in the production of goods and services they can produce most efficiently, therefore maximizing their gains from trade. It is widely observed that nations that are outward-oriented are often more successful in achieving higher rates of growth.