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trade is a benefit or a threat for developing countries. There are always more benefit I international trade and especially for developing countries. In my opinion the ones that benefit more with international trade are the developing countries for many reasons. First we need to understand the definition of developing countries to try to understand which countries are those. A developing country is a nation with a low living standard, underdeveloped industrial base, and low Human Development Index relative to other countries Characterized for the income distribution that isnt has much as it could be. (See exhibit 1). There are also some countries that are developing in a faster way than the other there countries are called BRICKs. So these countries must benefit with the international trade that is an economic practice where countries can import and export goods without fear of government intervention. There are many factors how developing countries can benefit and I will explain some of them. There are many ways of integration that can help countries between them. There are free trade, monetary union, customs union, common market, economic union, and customs and monetary union. But the easier one to accomplish is free trade and that is the one Im going to use to explain how international trade benefit developing countries and the policies they should use. Developing countries can benefit from free trade by increasing their amount of resources. These resources are land, capital and labor. These countries can obtain these resources easier with international trade which will allow them to produce their good or service easier and cheaper. They can enter new markets as well. Free trade will improve quality of life in the developing countries. This because they could export more and have better profits. Also because this will generate more commercial opportunities and investment. Developing countries can use free trade to improve their production efficiency. This because developing countries can obtain some of the know-how of the other counties which will help in the efficiency and innovation of their products. It helps by reducing the cost of inputs, acquire finance through investments and increase the value added of the products or services. International trade creates employment. Better foreign relations are usually an unintended result of free trade. But is really import because between the countries can help each other. They can have fewer problems and support themselves when there are problems with other countries.
There have been advances in the developing countries. As we can see in the exhibit 2 the exportation of the developing countries is the higher one. This because the international trade. This increase in the exportation is because there is less taxes and tariffs so developing countries can export with a lower cost. There are also the countries named BRICKs that are the countries that are developing faster. They are developing faster than the other ones due to stable governments, big intern market, large young population, low wages and are countries that obtain a lot of external inversion. Developed countries sometimes tried to stop the growing of these countries by using protectionism. But this isnt fair because all thought they said is social duping what developing countries make it isnt. They have lower wages due to their economy is not as big as developed countries and because the quality of life is lower. In exhibit 3 we can see the change in the quality of live in the regions of the world that are now developing. The amount of people who passed to life from 1, 25$ per day to more is: from 38, 44 million (1990) to 23, 33 million (2005). According to the World Trade Organization what they want to accomplish is more integration between countries, less paperwork, less costs and stop the red tape (See exhibit 4). That is a way of bad publicity of products or services of other countries. In conclusion international trade and economic integration benefits the developing countries. Developing countries can increase their resources; have a better quality of life, improve their efficiency and have a better relationship with other countries. All of these thanks of the international trade and different policies. The best a developing country could do is to accomplish an economic integration with other countries in order to reduce taxes and administrative costs.
Exhibit 1. - Dark green - developing according to the IMF; Light green - developing out of the scope of the IMF; Red - graduated to developed
Exhibit 2.-VVolume of exports of developed, developing and transition economies: Figure 1: 1990-2009 (Index, 2000=100)
Exhibit 3.-
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