Primaria Case Study

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Nowadays, almost all nations in the world are facing competition in international market. Some developing countries put non trade barriers through anti-dumping duties (AVD) and countervailing duties (CVD) on imports from developed nations. Primaria is one of the Developing nation whose members’ of the Parliament wants to introduce protectionist policies. These protectionist policies are not good for poor as well as developing countries because developing countries’ economy growth depends on trading with developed countries in a global market. As an Executive Director of the Global Development, I want to talk about The Importance of Trade in Stimulation the Economies of Developing Countries. There are many developing nations are taking benefits …show more content…

It can produce a products what has more cost effectiveness. For example, India should produce more agricultural products which use labor and India is more efficient for this advantage whereas USA has to make computer because he has strong capital and technologies too. The trade can help India to earn foreign currency and can invest in manufacturing plants and technologies. This additional investment will result in a higher rate of economy growth. Free Trade policies between two neighboring countries can lead high economy growth in the world. For example, America has free trade policies between Mexico and Canada that is called NAFTA. Mexico has advantage in low labor cost and USA has technologies and capital. So, it helps to cut down cost of products for US citizens, and Mexican can get jobs to live because of manufacturing plants. Moreover, if United States can ask to their works to reduced labor rates to get jobs because of competition. Till now, we have seen that developing countries have more labor and their per hour wage are also low which attracts foreign companies to invest in developing countries. For example, Apple’s manufacturing plant is in China, so, Apple’s products are selling at lower rate than before. China has highest population in the world. A closed economy’s economy is low. Dynamic gains advantage can help to improves domestic producer’s …show more content…

Carbaugh explained: ‘International Economy’ (pp. 240,242) that The World Bank is not actually a bank but it is an organization who gives loans to developing countries to fight against poverty, and helps in economy development for better living. It lends money to member governments, their private firms and their agencies and “the world bank provides both loans and grants to developing members that cannot obtain money from other souces at reasonable term. The funds are for specific development projects like hospitals, schools, highways, and dams.” The author also talked about International Monetary Funds (IMF) (p. 243) where the borrower countries have to follow rules and regulations like must agree to implement economic and financial policies. There is also Generalized System of Preferences works for developing nations’. Under this organization. US GSP has extended almost 3000 duty free imported products from eligible developing nations. (p.

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