Foreign Investment And Removal Of Trade Barrier

1447 Words Nov 17th, 2014 6 Pages
Trade plays a key role in stimulating economies. It promotes sustainable economic growth and development. However, for this to happen there needs to be openness. This paper is going to discuss how increasing the level of openness of developing nations can lead to increased economic growth. The paper will also review some of the dynamic gains that can be made from trade before concluding with a discussion of the roles of global trade organizations in promoting economic development. These discussions will be supported with examples of nations that have excelled in the various aspects that will be discussed.
How will increasing level of openness lead to economic growth? Our research shows that openness leads to technological advancement, foreign investment and removal of trade barrier. These factors can all contribute to economic growth. First of all, if a country opens up its door and welcome foreign investors, this is a beginning to future growth. Foreign investors bring in capital and advanced production technology in developed countries. China is a great example of this. Former country chief Deng Xiaoping established a couple of special economic development areas in coastal China cities in 1997. These economic development zones had favorable tax and land policy in order to attract foreign investors. When foreign investors established factories, capital investment and new technology were brought in. Capital investment and advanced manufacture ring technology were…
Open Document