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Trade Liberalization And Its Effects On Developing Countries - Education - Nairaland

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Trade Liberalization And Its Effects On Developing Countries by gomtas: 3:56pm On Sep 27, 2018
Trade liberalization is the removal or reduction of restrictions or barriers on the free exchange of goods between nations. This includes the removal or reduction of both tariff (duties and surcharges) and non-tariff obstacles (like licensing rules, quotas and other requirements). The easing or eradication of these restrictions is often referred to as promoting "free trade." It is a policy by which a government does not discriminate against imports or interfere with exports by applying tariffs (to imports) or Subsidies (to exports) or quotas. However, there has been increasing research in the area of economics to analyze the effects of trade liberalization. This analyses have been presented in many undergraduate research works. Below are just a few effects of trade liberalization to developing countries

DEATH OF NASCENT INDUSTRIES : Adoption of trade liberalization in a developing country will eventually lead to the death of the baby industries that are striving to survive. This is so because citizen will turn more to patronize those product coming in from other countries and this will eventually result to in the death of the industry.

OVER IMPORTATION : One of the significant impact indicates the relatively greater share of import than exports. The developing nations should develop production side and adopt export promotion policies besides managing imports for the achievement of sustainable growth.

In all, trade liberalization deteriorates economic growth, of developing countries by 280.86 million US$ and least developing by 3555.09 million US$. Hence adopting such policy will lead to the unattainability of her economic ambitions.
Re: Trade Liberalization And Its Effects On Developing Countries by CodeTemplar: 9:09pm On Sep 27, 2018
How will trade liberalization work out if people like Dangote who enjoy protection suddenly become exposed to competition from African nations producing cement, sugar, flour and petrol?

There are many beautiful theories that may not work in Nigeria like other developed nations because of systemic corruption.
The man-know-man factor in Nigeria is a huge huddle.

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