Premium Essay

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

In: Social Issues

Submitted By tahmidc97
Words 693
Pages 3
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…...

Similar Documents

Premium Essay

Why Countries Trade

...Chapter Outline I. Introduction II. International Trade Versus Interregional Trade ( international trade occurs for the same reasons as interregional trade ( gains from technology and gains from trade III. Trade in an Individual Product ( trade in cloth (U.S./India) — Figure 2.1 ( supply and demand ( the effects on India and the U.S. IV. Trade Based on Absolute Advantage A. Absolute Advantage ( PASSPORT: Football Games, Rats, and Economic Theory ( PASSPORT: Mercantilism ( Table 2.1 B. The Gains from Specialization and Trade with Absolute Advantage ( gains from trade — Table 2.2 ( the labor theory of value V. Trade Based on Comparative Advantage A. Comparative Advantage ( Table 2.3 ( David Ricardo ( Babe Ruth B. The Gains from Specialization and Trade with Comparative Advantage ( PASSPORT: Principal Exports of Selected Countries — Table 2.4 ( Change in world output — Table 2.5 VI. Trade Based on Opportunity Costs A. Opportunity Costs ( PASSPORT: Labor Costs as a Source of Comparative Advantage — Table 2.6 B. The Gains from Specialization and Trade with Opportunity Costs ( Table 2.7 ( Autarky VII. The Production Possibilities Frontier and Constant Costs A. The Production......

Words: 10137 - Pages: 41

Premium Essay

Trade Policy and Developing Countries

...Course: Tutor: Date of submission: Trade Policy and Developing countries A number of developing countries have enabled the facilitation of their economies to develop recent centres of development internationally. International trade has enabled them to make an effective way to generate funds as a result of making trade. However, there has been uneven development and especially the poorest countries have managed a lesser share in the world economy. Many of these poor countries have been unable to make appropriate use of the markets that are opening around them or even try to balance losing tax revenue by developing ways of taxation, since the financial stability and internal structures of these countries are lacking in some ways. The upholding of barriers to trade and other protective measures continues by the need to keep the existing home control structures (Krueger, 45). The large numbers of developing countries highly dependent on agriculture have slow productivity rate and the trade barriers remaining are more than those for industrial goods. Industrial production has witnessed more investment by the emerging economies; this has facilitated the development and it has seen exports grow twice as much as agricultural exports, which comprise 80 percent of the total volume of exports of developing countries. It is necessary for developing countries to take free trade services and labour mobility (Colin, 42). Developing countries should develop their institutions,......

Words: 808 - Pages: 4

Premium Essay

Examine the Factors Leading to the Global Financial Crisis of 2008/10. Evaluate the Impacts of This Crisis on Either a) a Country of Your Choice or B) a Business of Your Choice.

...Examine the factors leading to the global financial crisis of 2008/10. Evaluate the impacts of this crisis on EITHER a) a country of your choice OR b) a business of your choice. In this assignment I will be discussing the factors that caused the global financial crisis of 2008/2010 and will be evaluating the impacts of the crisis on the UK economy. Firstly a recession is defined as a period of negative economic growth for two consecutive quarters. This means there is a fall in National Output and National Income. Inevitably a recession will involve higher unemployment and an increase in government borrowing. (Economic help, 2008,, accessed on 24/11/2010) The financial crisis of late was caused by factors including, subprime lending, complex financial systems, greed, high oil prices, globalization and the collapse of the Lehman brothers. All of these factors will be explored throughout. Subprime mortgages are a big factor when talking about the recession, Justin Pritchard states that subprime refers to a borrower that is not prime. These are borrowers who might be less likely to repay a loan and therefore default. Subprime borrowers may be classified as subprime. Banks offered loans to people in the subprime category often putting more interest on the loans as they are a greater risk for the bank however the banks were happy to take on the risk as they could receive a greater interest rate back. These subprime mortgages were to have a big impact on the...

Words: 3557 - Pages: 15

Premium Essay

International Trade - Effect of Trade Between Countries

...Aggregate gains from trade can be shown as followed: In a country that cannot trade, the output of a good must equal its consumption. If DC is consumption of cloth and DF consumption of food, then in a closed economy, Dc=Qc and Df=Qf With trade the value of consumption still needs to be equal but the mix of goods can be different The left hand side is the level of food imports in the domestic economy which is determined by the relative price of cloth and the economy’s cloth exports. Eq. 4.7 is therefore the budget constraint BC slope: Consuming one less unit of cloth gives you Pc extra which can buy you Pc/Pf units of food. Before trade if an economy produces at a point like 2, after trade it can achieve anything within the shaded region. The set of feasible points are then where the BC is in the shaded area. BC slope: Consuming one less unit of cloth gives you Pc extra which can buy you Pc/Pf units of food. Before trade if an economy produces at a point like 2, after trade it can achieve anything within the shaded region. The set of feasible points are then where the BC is in the shaded area. Gains from trade: In the absence of trade the economy would have to consume what it produced on the production possibility frontier. An economy that trades can consume more of both goods and hence it may be possible in principle to give each individual more of both goods, making everyone better off. Fundamental reason that trade is beneficial is that trade......

Words: 1673 - Pages: 7

Premium Essay

Abortion: It's Your Choice

...Abortion: It’s Your Choice Abortion is a controversial topic around the world. There are two groups when talked about when discussing this topic: pro-life and pro-choice. People believing in pro-life want to make abortion illegal. They believe it is not only wrong, but is cruel to kill an unborn child. It also can be harmful to the mother. Dorothy Shaw, president-elect of the International Federation of Gynecology and Obstetrics (FIGO) is quoted in the article “Unsafe Abortions Kill Thousands of Women, Experts Say” by Kuala Lumpar calming “Unsafe abortion is a serious public health problem for women, accounting for 13 percent of all maternal deaths globally each year (1).” Kuala Lumpar of the Agence France Presse [a French newspaper] goes on to state “Some 70,000 women worldwide die from unsafe abortions each year while many more suffer serious injuries, especially in poor countries…(1)” These are both valid points; but what if a woman is raped and becomes pregnant, if there is a fatal problem with the unborn child, or if the mother becomes fatally ill? If abortions became illegal families would be left with nothing but heartache and sorrow for something that can ultimately be fixed. Women of rape cases have every right to an abortion if they choose. Why should they have to keep a baby that was made with a man that they never wanted to sleep with in the first place? According to Bioethicist Andrew Varga, “It is also said that a pregnancy caused by rape or incest is......

Words: 1077 - Pages: 5

Premium Essay

Disadvantages of International Trade

...Disadvantages of International Trade : The Global market has made it easy to buy and sell international goods. While this has benefits, it also presents a problem. Such trade can cause countries to be prosperous for a short time, but leads to economic exploitation, loss of cultural identity, and even physical harm. Support of Non-Democratic Systems Great hardship can be caused when people make poor decisions about land use or surplus production for export and do not take the general population’s welfare into consideration. For example: Landowners in Nicaragua and El Salvador want farmers to grow coffee beans because it is a very profitable cash crop, however, the farmers would like to use the land to grow more food for their families. The farmer’s wishes are ignored because they do not actually own the land. Cultural Identity Issues Culture is a major export in the world. It displays and promotes values and lifestyles worldwide. The "culture consumer" in other countries is sometimes overwhelmed by American ideas. Products also carry cultural ideas and messages. There are values of the culture the make the product. For example: Coca-Cola, McDonalds, Nike, and Microsoft all sell products that symbolize American values and symbolize and reflect American corporate culture. Social Welfare Issues: Maintaining safety standards, minimum wages, worker’s compensation and Health benefits are all social welfare issues that cost business money. If a......

Words: 371 - Pages: 2

Premium Essay


...1.0 - Introduction of Topic In today’s modern world, the need for transportation, particularly cars are prevalent in a developing country like Malaysia. The rise of technology and innovation allow us to develop and invent quality cars for the market. However, the ever-changing demand of the consumers and the unstable amount of supply of local and foreign cars lead to government’s intervention in the market of automotive industry. On 20th January 2014, The International Trade and Industry Minister, Datuk Seri Mustapha Mohamed unveiled The National Automotive Policy 2014 (NAP 2014) in order to tackle the problem faced by local manufacturers and consumers. NAP 2014 is Malaysia’s first step towards progressive market liberalization and an attempt to find a common path of liberalization, given the political, economic and technological constraints. The policy was considered as a “balancing act” between the priorities of attracting new investments, developing sustainable industry competitiveness and safeguarding the interests of existing investors and stakeholders. This in turn will make Malaysia as a regional hub for production. ------------------------------------------------- “The loans would be for the development of tool, dies and moulds, component technology pre-commercialization, competitiveness-related activities, distribution infrastructure establishment as well as the development of energy-efficient vehicle (EEV) infrastructure,”~ Datuk Seri Mustapha Mohamed Other...

Words: 3710 - Pages: 15

Premium Essay

There Should Be Free Trade Between Countries

...There should be free trade between countries – discuss Economic trade theory suggests that countries can be presumed to have a comparative advantage in some of its industries if it competes on the global market, this would seem advantageous for a country to sign free trade agreements with the expected benefits exceeding the costs. In the last two decades there has been a recognition that free trade has the potential to damage a developing country’s economy and its people and standard of living. “Free trade is considered to be desirable where all nations prosper and develop fairly and equitably” (Shah, 2006). Free trade and free markets are about making trade easier by allowing the market to respond to the needs of supply and demand. Mandela during a lecture at the British Museum said, “We welcome the process of globalisation. It is inescapable and irreversible, if globalisation is to create real peace and stability across the world, it must be a process benefiting all”. Free trade is defined as the unrestricted purchase and sale of goods and services between countries effectively creating a common market (Relyea, 2011), without the imposition of barriers to entry such as tariffs, duties and quotas, put in place by governments to restrict the flow of goods and services, however artificial barriers do exist, Economics and politics are intertwined, artificial barriers are normally put in place to protect domestic producers from international competition and redirect,......

Words: 1870 - Pages: 8

Premium Essay

Analyse Why a Country of Your Choice Specializes in the Production of a Certain Good/Service

...Analyse why a country of your choice specialises in the production of a certain good/service Specialisation is the concentration by workers, firms or a whole economy produce a narrow range of goods or services. By specialising and then exchanging with others, an economy can produce more with the resources it has. Ghana is the 2nd largest cocoa producing country globally, and it specialises in cocoa production. By specialising in cocoa production, Ghana is able to create a higher output, improve quality, offer consumers a bigger variety of products and expand their market, which as a developing country, helps them improve. Many factors influence why Ghana’s specialised good is cocoa, and not cars for example. Ghana have the optimal climate and average rainfall for the production of cocoa, they also have the available land to plant the cocoa trees on and build the factories. Ghana is a LEDC and therefore the majority of its industry is in the primary sector meaning manual labour is required. Cocoa is harvested manually, and workers in cocoa production is around 720, 000. Many workers have had skills passed on through generations, and cocoa production is their only income. Most production is done by farmers on plots of 4-5 acres, and Ghana, along with 7 other countries, produces and supplies 88% of the world’s cocoa. Ghana make optimum use of their land and labour resources to produce a good that can generate income. They would be no good at making cars, because they......

Words: 389 - Pages: 2

Premium Essay

The Impact of Trade Liberalization on Developing Countries

...The effects of trade liberalization in agriculture, particularly of developing countries, have become an important part of major studies in recent years after a decade of failed or unsafisfactory WTO negotiations. The trade talks launched at Doha, Qatar, in November of 2001, are considered to be the first of nine negotiating rounds to address the “needs and the interests” of developing countries (Elliott, 2007, p. 1). There have been many attempts to reach an agreement between countries on agricultural liberalization. The failure to reacha solution still persists, however, as was seen at the “Battle in Seattle”, in November of 1999 where strong anti-WTO sentiment took to the streets in mass protests. (Fabiosa, 2008, p. 1). This anti-trade stance asks the fundamental question whether agricultural trade liberalization is beneficial to developing countries or not. The growth of globalization creates interdependence among countries and increases the capacity of the economy of the countries to engage in international trade. Trade liberalization in agriculture has significant benefits to individuals who devote their lives to agriculture, mainly small farmers from developing countries. This idea would also promote economic growth in these countries. In order to make trade liberalization in agriculture an ideal concept, there are still a few hurdles that need to be cleared, such as granting developing nations funds to meet......

Words: 2118 - Pages: 9

Premium Essay

Identify the Factors That Influence the Demand for Housing in a Country of Your Choice and Examine the Impact of a Housing Boom on the Economy of Your Chosen Country. with low taxation and enjoys free trade from all around the world. However, there are a plenty of people who cannot own or even rent an apartment because of the high housing prices. According to the Hong Kong Audit Commission(2014), there are 22.8 million peoples who are in a waiting list of public rental housing and most of them are from lowincome families, singletons, elderly and unemployed people. Most of them are living in urban slums known as "cage home" because they cannot afford the payment of rent or buy house. Therefore, It is demonstrated that the housing boom of Hong Kong not only had the positive impact, but negative. This essay will describe two of the factors influence the demand for housing in Hong Kong, including lowinterest rate and intensive population, as well as analyze the benefits and disadvantages impact of the housing boom. "A runup in housing prices fueled by demand, speculation and the belief that recent history is an infallible forecast of the future"(Investopedia, 2014). The meaning of the housing boom is that housing prices continue to increase, because of the consumer would like to make a profits through sale of real estate. Hong Kong has a very lowinterest rate compared to other neighboring countries such as China, India and Korea. According to the Trading Economics(2014), the benchmark interest rate in Hong Kong was last recorded at 0.50 percent compared with other countries 6 percent, 8 percent and 2.25 percent......

Words: 1305 - Pages: 6

Premium Essay

05.04: Why Do Countries Trade?

...05.04 Trade Analysis—Template Name: Rebecca M Houck Instructor: Ms. Lord Use the chart in the lesson to identify one developing country and one developed country to compare to the United States. Use the tables below to record data for each country. Then respond to the analysis questions. Table 1: Identify one developing and one developed country along with the United States. Complete a trade analysis for agricultural products. Corn Citrus Number of additional worker hours to produce one unit of citrus instead of one unit of corn United States 2 4 2 Developing Country South Africa 6 10 4 Developed Country Romania 8 10 2 Table 2: Identify one developing country and one developed country along with the United States. Complete a trade analysis for industrial products. Apparel Computer Software Number of additional worker hours to produce one unit of computer software instead of apparel United States 2 4 2 Developing Country South Africa 4 12 8 Developed Country Romania 6 8 2 Analysis—Using the data you collected, answer each of the following analysis questions in well-written paragraphs in your own......

Words: 476 - Pages: 2

Premium Essay

Advantages & Disadvantages of International Trade

...Chapter 1: International Interdependence 1.4 ADVANTAGES & DISADVANTAGES OF INTERNATIONAL TRADE Pg 22-27 Advantages of International Trade The fundamental reason for international trade is to sell something that we don’t need and to buy something we do need. Trade creates jobs, attracts investments, attracts new technology and materials, and offers Canadians a wider choice in products and services. People spend, save, or pay taxes with the money they earn in their jobs. The government uses taxes to provide services, which creates more jobs. When people save, the capital markets lend money to others, who will spend it on consumer goods, or open or expand a business, therefore creating new jobs. When people spend money, it creates demand, which creates new jobs. If something occurs to slow this expansion, the cycle reverses. Ex. higher taxes, higher interest rates. Meeting our needs Trade is always balanced if it is fair. If 2 people trade baseball cards and one gives another 6 cards, they should get 6 back. Many businesses can create a surplus inventory of goods and services. Canadian farms produce more food than Canadians can eat, Canadian manufacturers make more products than Canadians use, and Canadian service providers can provide service to other countries. Canadians cannot produce fruits like bananas and oranges, and some products we cannot make. These products are imported. Both trading partners get something they need by trading something they...

Words: 864 - Pages: 4

Premium Essay

Advantages and Disadvantages of International Trade

...  on  the  advantages  and  disadvantages  of  international  trade   for  the  countries  whose  data  you  downloaded  recently.  You  are  required  to  illustrate   your  report  with  data  and  charts.     I)  Introduction:   “The   international   trade   is   the   exchange   of   goods,   services   and   capital   between   countries”   (Haekal,  2012).  Trade  exists  for  centuries  but  had  known  an  international  dimension  with  the   globalisation.   In   this   report,   we   will   see   some   advantages   and   disadvantages   of   the   international  trade,  through  the  examples  of  two  countries:  France  and  Italy.       II)  The  advantages  of  trade:   It   exists   many   advantages   to   the   international   trade.   We   will   see   three   of   them,   which   are,   meet  the  need  of  the  country,  create  jobs  and  attract  foreign  investments  in  the  country.     1)  Meeting  the  need  of  the  country:   By   open   its   economy   to   the   world,   a   country   increase   its   growth  ......

Words: 2145 - Pages: 9

Premium Essay

Pros and Cons of Liberalisation , Privatisation and Globalisation, Lpg in Developed and Developing Countries

...Pros and Cons of Liberalisation , Privatisation and Globalisation (LPG) , LPG in Developed and Developing Countries LIBERALISATION The main aim of liberalisation was to dismantle the excessive regulatory framework which acted as a shackle on freedom of enterprise. Over the years, the country had developed a system of “license-permit raj.” The aim of the new economic policy was to save the entrepreneurs from unnecessary Harassment of seeking permission from the Babudom (the bureaucracy of the country) to start an undertaking. Similarly, the big business houses were unable to start new enterprises because the Monopolies and Restrictive Trade Practices (MRTP) Act had prescribed a ceiling on asset ownership to the extent of Rs. 90 crores. In case a business house had assets of more than Rs.90 crores, its application after scrutiny by the MRTP Commission was rejected. It was believed that on account of the rise in prices this limit had become outdated and needed a review. The major purpose of liberalisation was to free the large private corporate sector form bureaucratic controls. It, therefore, started dismantling the regime of industrial licensing and controls. On April 14, 1993, the Cabinet Committee on Economic Affairs decided to remove three more items form the list of 18 industries reserved for compulsory licencing. The three items were: motor cars, white goods (which include refrigerators, washing machines, air-conditioners, microwave ovens etc.) and raw......

Words: 2341 - Pages: 10

Die Muppets erobern Manhattan | All AmericanS01E09 | Barbados