Challenges Faced By Developing Countries

1310 Words Nov 9th, 2015 6 Pages
This assignment will be identifying the key challenges that developing countries face in international trade. It will be linked to statistics and references to support the information. It will end by showing several topics about the argument of import substitution policy and the export-led economic development. Altogether, these concerns will be linked to the circumstances faced by the developing countries with links to the World Trade Organization (WTO) regime.
A developing country is, a country that is referred to as developing due to their low GDP level and they are challenged with great cases of poverty and unemployment.

International Trade is a vital encouragement of economic growth and foreign income. It increases a country’s intake abilities, raises world out put and delivers entry to limited supplies and universal markets for goods which deprived countries would be incapable to grow.

The key challenges faced by developing countries in international trade:

Protectionism

A challenge faced is that Industrialized countries exercise strong protection over their agricultural products for example, endless arguments, recrimination between USA and EU. A developing country and its government may choose to dedicate a huge part of their resources to encourage agricultural production. This is done by mechanizing farms, using fresh seeds and fertilizers, spraying land and promoting agricultural research and development. The EU is responsible for 90% of all export subsidies…
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