Question

In what ways do the trade problems of developing economies differ from those of advanced economies, and what are the implications of these differences for the design of their trade policies.

Answer 1

The present international trade is free trade every country is presently practicing in the world. However, the countries involved in international trade is different income groups hence the following the challenges faced by the developing country.

• The developing countries are low-income group countries they are sometimes force forced enter free trade protection, protection of the domestic industries policy issues.
• Low level of competency in the international market hence improving efficiency, protecting domestic industries are the min concerned.
• Currency depreciation, Adverse BOP due to internal factors affects the international trade of the countries hence adopting the suitable policy are the main policy concerned of the country

These are the main problem of the developing country when compared to the developed country.