international trade
The relationship between openness to international trade and development
Introduction:
Openness to international trade is the popular choice among different countries for their own development, especially after the establishment of the World Trade Organization (WTO) in 1995, globalisation is a trend for different districts, and a country is difficult to develop its economy in a closed circumstance. According to Razmi and Refaei (2013, p377), International trades will benefit the people and institutions of the countries, because the specialization of the production of goods and services will increase the productivity and lead to higher income and better living standards. The competition and cooperation between countries also will allocate the resources in a more efficient way, so the whole world would have a higher level of welfare from the international trades.
Kabadayı (2013, p194) also states that openness to international trade leads to the human development, for the technology, ideas and cultures are exchanged when the countries are exchanging goods and services. The globalization make the views competed and the cultures fused, providing a better choice for the world population.
If the border of the nation is open to trade, economic freedom will lead to the economic growth. Liberalization promotes specialization and division, thus increasing the productivity and income and bringing greater efficiency. The communication between different countries not only provides the advanced technology and ideas, but also creates the chance to develop the knowledge and cultures. This essay focuses on the positive development outcomes of the openness to international trade from the aspects of economic growth, institutional progress and industry structural optimization, and it also explores the negative aspects through the income inequality and inflation.
Benefit 1: openness generates economic growth
Openness to the international trade means the whole economic
Introduction:
Openness to international trade is the popular choice among different countries for their own development, especially after the establishment of the World Trade Organization (WTO) in 1995, globalisation is a trend for different districts, and a country is difficult to develop its economy in a closed circumstance. According to Razmi and Refaei (2013, p377), International trades will benefit the people and institutions of the countries, because the specialization of the production of goods and services will increase the productivity and lead to higher income and better living standards. The competition and cooperation between countries also will allocate the resources in a more efficient way, so the whole world would have a higher level of welfare from the international trades.
Kabadayı (2013, p194) also states that openness to international trade leads to the human development, for the technology, ideas and cultures are exchanged when the countries are exchanging goods and services. The globalization make the views competed and the cultures fused, providing a better choice for the world population.
If the border of the nation is open to trade, economic freedom will lead to the economic growth. Liberalization promotes specialization and division, thus increasing the productivity and income and bringing greater efficiency. The communication between different countries not only provides the advanced technology and ideas, but also creates the chance to develop the knowledge and cultures. This essay focuses on the positive development outcomes of the openness to international trade from the aspects of economic growth, institutional progress and industry structural optimization, and it also explores the negative aspects through the income inequality and inflation.
Benefit 1: openness generates economic growth
Openness to the international trade means the whole economic
References: Froning, D H 2000, ‘The benefits of free trade: A guide for policymakers’. Heritage Foundation Backgrounder, (1391), 25.