Type: Process Essays
Sample donated: Simon Mckinney
Last updated: February 27, 2019
Inour opinion free trade is beneficial to the third world countries (developingcountries). It is also called as a less-developed country where country withlow living standards, less developed industrial base and the Human DevelopmentIndex (HDI) are lower than other countries. Generally, developing countries arehave not achieved significant industrial levels compared to their population. Firstly,benefit of free trade is acts as pacifier for weaker and developing countries.
This act allowing free trade in developing countries makes the economy moreattractive. As we know, free trade is an economic practice whereby countriescan import and export goods without fear of government intervention. Forexample, there is no government intervention through the quotas or duties thatpeople can buy from other countries or what they can produce and sell to othercountries. This can be a key in creating a stimulus that allows a new countriesand declining economies to grow not to stagnate and collapse. Where, developingcountries are can access to enter a new markets since companies do not have toworry about absorbing tariffs and other obstacles to enter market and theyfreely can sell products.
Hence, in this way we believe that free trade willbecomes a benefit to developing countries.Furthermore,nations can increase the quality of life for their citizens when engaging infree trade. The European Union actively encourages developing countries to usetrade to build up their own economies and improves living standards. Free tradeallowed them bringing the goods (import) might be less expensive for developingcountries than trying to produce consumer goods or services within theirborders which it can helps to boosting their standards of living. Purchasingpower of individuals will increase if they implement low consumer prices. Thehigher of purchasing power allows consumer to purchase more. It will be effectto national economic growth through the number of consumer purchases.
There aremany of developing countries does not have process of production accessible toconvert raw materials into valuable consumer goods. Thereby, with friendlyneighbors usually the developing countries are often doing import of goods eachother. For instance, in 1971 European Union were help developing countriesexport to enhance them generates export earnings and promoting their economicdiversity of commodities and raw materials. Therefore, importing fromneighboring countries is ensuring a stable flow of goods available for use.
Otherthan that, free trade is beneficial to developing countries in better foreignrelations. A good relationship with foreign country is usually the result ofunintended free trade. The developing countries are always subject tointernational threats. Build a strategic free trade relationship with morepowerful and effective countries can help guarantee that developing countrieshave additional protection against international threats. For instance, developingcountries are become steadier, more straightforward and more open whendeveloping countries under the rules-based international trading system in theWorld Trade Organization (WTO). Developing countries can likewise utilize freetrade agreements to enhance their military quality and their internalinfrastructure and additionally to enhance politically.
Hence, these unintendedbenefits allow developing countries to learn and create how they should governtheir economy and what kind of government policy can benefit the people.