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Liberalization Of Trade Essay

6066 words - 24 pages

Project Outline:1) Importance of the topic2) Meaning of Liberalization of Trade3) Examples of Liberalization of Tradea. North American Free Trade Agreementb. European Unionc. General Agreement on Tariffs and Trade4) Advantages and Disadvantages of Liberalization of Trade5) What lead to Liberalization of trade6) Impact on LDCs7) Examples for the impact of LDCsa. Syriab. Tunisiac. Ethiopiad. Egypt8) References1) Importance of the topicThis paper is about Liberalization of trade and its impact on LDCs.First of all Liberalization of trade is important nowadays since it represents the global direction of trade. As International Trade reaches its peak, Liberalization of trade seems like the most natural thing to do. A reduction of trade restrictions and the emergence of trade blocks and other forms of economic integration makes Liberalization of trade a very important topic, if not the most important one to discuss.Liberalization of trade has been increasing day by day and is quite apparent now with all the forms of economic integration.This leads us to our second point which is the impact of Liberalization of trade on Less Developed Countries.Less developed Countries are affected by this trend due to its tight relation with Economic Development.Trade is an engine of Growth, and has numerous contributions to the development of a country.Haberler has pointed out some very important benefits that international trade can have on Economic Development, which will be discussed later on.Critics on international trade also have a list of harmful effects of trade on Economic development which we will also see later on.Since Liberalization of trade has an impact on International Trade it, in return, also has an impact on LDCs.In the rest of the paper we will see what kind of impact liberalization of Trade has on less developed countries and we will also see several examples on developing countries.2) Meaning of Liberalization of Trade:A fundamental shift is occurring in the world economy. We are moving rapidly away from a world in which national economies were relatively self-contained entities, isolated from each other by barriers to cross-border trade and investment; by distance, time zones, and language; and by national differences in government regulation, culture, and business system. And we are moving toward a world in which barriers to cross-border trade and investment are tumbling; perceived distance is shrinking due to advances in transportation and telecommunications technology; material culture is starting to look similar the world over; and national economies are merging into an interdependent global economic systemTrade Liberalization revisits the empirical evidence on the relationship between economic integration and economic growth. First, there are several openness indicators and trade liberalization dates for a wide cross-section of countries in the 1990s. Second, the extent of the Sachs and Warner (1995) study of the relationship between trade...

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