Trade Liberalization
MBA program
Business Economics
Assignment 1
Trade Liberalization
Prepared by : Rawda Sayed Mohamed Hassan
Supervised by: Dr/ Khaled Hanafy
Table of Contents
Definition of trade liberalization3
Liberalization VS Protectionism3-4
When & How started5-7 WTO5
Main functions of WTO 6
Principles of trade6-7
Gains from trade liberalization8-9
Effect of trade liberalization on developing countries10
Effect of trade liberalization on Egypt10-11
1) Definition of Trade Liberalization: It refers to the removal or reduction of trade practices that prevent free flow of goods & services between one nation & another. This includes tariff & non tariff barriers such as (duties, export subsidies, surcharges, licensing regulations, quotas, & arbitrary standards) 2) Liberalization VS Protectionism(Restriction): Protectionism is the economic policy of restraining trade between nations, through methods such as tariffs on imported goods, restrictive quotas, and a variety of other government regulations designed to discourage imports, and prevent foreign commodities take-over of domestic markets and companies. This policy is closely aligned with anti-globalization, and contrasts with trade Liberalization, where government barriers to trade and movement of capital are kept to a minimum. I other protectionism refers to policies or doctrines which protect businesses and workers within a country by restricting or regulating trade with foreign nations Historically, protectionism was associated with economic theories such as mercantilism (that encourage import substitution. During that time, Adam Smith famously warned against the 'interested sophistry' of industry, seeking to gain advantage at the cost of the consumers. Most modern economists agree that protectionism is harmful in that its costs outweigh the benefits, and that it impedes economic growth.
A variety of policies can be used to achieve
Business Economics
Assignment 1
Trade Liberalization
Prepared by : Rawda Sayed Mohamed Hassan
Supervised by: Dr/ Khaled Hanafy
Table of Contents
Definition of trade liberalization3
Liberalization VS Protectionism3-4
When & How started5-7 WTO5
Main functions of WTO 6
Principles of trade6-7
Gains from trade liberalization8-9
Effect of trade liberalization on developing countries10
Effect of trade liberalization on Egypt10-11
1) Definition of Trade Liberalization: It refers to the removal or reduction of trade practices that prevent free flow of goods & services between one nation & another. This includes tariff & non tariff barriers such as (duties, export subsidies, surcharges, licensing regulations, quotas, & arbitrary standards) 2) Liberalization VS Protectionism(Restriction): Protectionism is the economic policy of restraining trade between nations, through methods such as tariffs on imported goods, restrictive quotas, and a variety of other government regulations designed to discourage imports, and prevent foreign commodities take-over of domestic markets and companies. This policy is closely aligned with anti-globalization, and contrasts with trade Liberalization, where government barriers to trade and movement of capital are kept to a minimum. I other protectionism refers to policies or doctrines which protect businesses and workers within a country by restricting or regulating trade with foreign nations Historically, protectionism was associated with economic theories such as mercantilism (that encourage import substitution. During that time, Adam Smith famously warned against the 'interested sophistry' of industry, seeking to gain advantage at the cost of the consumers. Most modern economists agree that protectionism is harmful in that its costs outweigh the benefits, and that it impedes economic growth.
A variety of policies can be used to achieve