International Trade of Developing Countries - 1155 Words

International trade of developing countries is the classic weak vs. strong dichotomy, and underdeveloped or developing countries cannot make it solely on their own efforts; the have nots need help from the haves. Developed nations trumpet the claim that the answer to developing nations’ international trade issues is untrammeled or open market activity as opposed to government intervention by developed nations’ governments. This begs the question as to what extent the governments of developed nations are or should be responsible for supporting developing countries’ growth in international trading markets. Often the protectionist actions of developed nations’ governments to enhance their own international trading activities are the very†¦show more content†¦511): Recent literature on international trade negotiation accords considerable attention to the ways in which developing countries increasingly coalesce to effect gains for themselves in negotiation, mostly with the developed world. This is both appropriate and important: from the Uruguay Round to the Doha Round, coalitions have facilitated the gains (and, at times, the losses) made by the weak against the strong. (Singh, 2006, p. 499). Regional agreements and export-import aid by developed nations to developing nations have provided some relief through the U.S. Export-Import Bank (Ex-Im Bank), the North American Free Trade Agreement (NAFTA), the Association of Southeast Asian Nations (ASEAN), and the European Union/Common Market, among others (Carbaugh, 2013). Import Substitution and Export-led Growth The two key approaches by developing nations to implement their own trade policies are import substitution and export-led growth. Import substitution strategy is inward oriented: trade and industrial incentives favor the domestic market over the export market of developing nations, a strategy utilized extensively in Latin America by Argentine, Brazil, and Mexico (Carbaugh, 2013, p. 247). Advantages of this approach include: †¢ Risks of developing the domestic industry to replace imports are low because the market alreadyShow MoreRelatedProblems of Developing Countries in International Trade3524 Words   |  15 PagesProblems of Developing Countries in International Trade Developing countries and trade Introduction: International trade is an important source of foreign income in almost all developing economies, these countries are referred to as developing due to their low GDP level and they are faced with high levels of poverty and unemployment, according to David Ricardo and Adam smith international trade plays a crucial role in the development of an economy, the Mercantile theory of development states thatRead MoreProblems of Developing Countries in International Trade3518 Words   |  15 PagesProblems of Developing Countries in International Trade Developing countries and trade Introduction: International trade is an important source of foreign income in almost all developing economies, these countries are referred to as developing due to their low GDP level and they are faced with high levels of poverty and unemployment, according to David Ricardo and Adam smith international trade plays a crucial role in the development of an economy, the Mercantile theory of development statesRead MoreGlobalization Is The International Trade Of Ideas And Customs Throughout Developing And Developed Countries1360 Words   |  6 Pages Globalisation is the international trade of ideas and customs throughout developing and developed countries. Globalisation can impact these countries positively or negatively depending on the interaction whether it be economically, politically, culturally or historically. The involvement of a developed country on another developing country can largely impact both countries by means of how they adapt to the new ideas that were introduced. Globalization can affect anyone and everyone in the worldRead MoreInternational Trade And The Global Marketplace1428 Words   |  6 Pagesmany countries are engaged to international trade in order to achieve economic growth, free trade agreement and financial liberalization has contributed to the opening up of world economies and resulted in more international trade. Countries use their comparative advantages to gain a positon in the global marketplace and achieve economic growth (Seyoum 2007). International trade is a critical resource of revenue earning for developing countries. However, the benefits realized from free trade are mostlyRead MoreAdvantages And Disadvantages Of International Trade1334 Words   |  6 Pagespurchased often are items we as a country have received from other countries. We forget that the clothes we are wearing may have come from China or the TV we are watching our favorite shows on came from Japan. International trade has advantages and disadvantages for everyone inv olved. It wasn’t that long ago that the items we owned only came from within our own country. So why is it that international trade exists and what advantages does this bring to a developed country and what advantages does thisRead MoreAdvantages Of International Trade For Developing Nations1313 Words   |  6 PagesAdvantages of international trade for developing nations Although the concept of free trade and globalisation may subtly imply a polarity between the developed and developing worlds, it can be argued that, in order to function successfully, the pressure to create a competitive and comparative advantage hold all nations on a level-playing field. Sinclair Davidson (2015) cited David Ricardo (1821) in his argument that foreign trade is, indeed, beneficial to a country, for a number of reasons. By reducingRead MoreInternational Trade : Economic Activity Of Nations1627 Words   |  7 PagesInternational trade is important to the overall economic activity of nations, including the growth and domestics’ production. According to the United Nations Conference on Trade and Development (UNCTAD) and WTO, international trade has grown remarkably in recent decades as shown in figure 1 and 2. It can be seen that the growth of trade has led into the rapid economic growth in some countries. The reasons of rapid growth in world trade is due to the reduction of trade barriers at global and regionalRead MoreChallenges Faced By Developing Countries1310 Words   |  6 Pageschallenges that developing countries face in international trade. It will be linked to statistics and references to support the information. It will end by showing several topics about the argument of import substitution policy and the export-led economic development. Altogether, these concerns will be linked to the circumstances faced by the developing countries with links to the World Trade Organization (WTO) regime. A developing country is, a country that is referred to as developing due to theirRead MoreGrowth in International Trade Markets795 Words   |  3 Pagesthe claim that the answer to developing nations’ international trade issues is untrammeled or open market activity as opposed to government intervention by developed nations’ governments. This begs the question as to what extent the governments of developed nations are or should be responsible for supporting developing countries’ growth in international trading markets. Often the protectionist actions of developed nations’ governments to enhance their own international trading activities are theRead MoreGlobalization Of World Trade Has A Positive Impact On Countries956 Words   |  4 Pages Trade between nations has existed for centuries; the main difference is that today it occurs at a greater speed, higher volume, more complexity and geographic reach as a result of the consequent intensification of globalisation and the development of transport and communications (Taylor, 2002). The increase in international trade has brought many benefits such as economic growth, increasing consumption capacity and the reduction of poverty, all as a result of globalisation. However, globalisation