One argument in the debate surrounding globalization is about the inequality between developed and developing nations. Explain how reduced barriers to trade and investment might help reduce this inequality. Please answer the qyestion in more than 500 words.
Tariffs are taxes that governments of the countries place on imported goods for some reasons like protecting sensitive industries and protecting against dumping.
Trade barriers on imports or subsidies for farmers in developed economies will lead to overproduction and dumping on world markets, which will lower the prices and hurt the farmers in poor countries. Tariffs tend to create inequalities in the international trade especially for poor countries. Because in such developing countries, there will be low rates for raw commodities and high rates for labor intensive processed goods. Trade policy should be in such a way that it equally benefit all the countries which participate in the global trade.
Then the reduced trade barriers to trade and investment help to reduce the inequality between countries.
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