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Evaluate the Disadvantages of Further Trade Liberalisation to Country of Your Choice.

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Submitted By tahmidc97
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Evaluate the disadvantages of further trade liberalisation to country of your choice.
Trade liberalisation is defined as removing barriers to trade between different countries and encouraging free trade.
By removing trade barriers, it could have a negative impact on poor and developing countries (for e.g. Nigeria) as structural unemployment may occur in the short term. This is because when a country imposes restrictions on free trade, the aim is to usually protect domestic industries from cheaper and more efficient foreign competition. If these restrictions were lifted to an extent that it puts a large number of domestic businesses out of work then it will impact a large number of workers, their families and could dramatically change their lifestyle. A country like Nigeria could not afford for this to happen as there are already a large number living in poverty. In addition, it is also possible that unemployment goes so high that government assistance will be necessary. This would be fine if it were to happen in the UK for example, where we have a government which has funds to accommodate benefits and JSA but in a developing country like Nigeria, government intervention is not always possible.
Another disadvantage of further trade liberalisation in Nigeria is that it can lead to pollution and other environmental problems. The current pollution levels in Nigeria are seriously high therefore if the country was to engage in free trade it will add to the current environmental problems they are already trying to eradicate. Transportation is a key factor which is needed to engage in trade as goods have to go from one side of the world to the other; however this comes along with financial and environmental costs therefore Nigeria would find it difficult to trade as it will simply further deteriorate their current environment.
Another disadvantage of further trade…...

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