Importance Of Trade And Economic Growth Of Developing Nations

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The Importance of Trade in Stimulating the Economies of Developing Nations Nicole Memoly Johnson & Wales University Graduate School Abstract This paper explores the importance of trade in stimulating the economies of developing nations while focusing on the fictional country of Primaria. Topics include the potential opportunities for growth, dynamic gains from trade, the impact of trade policies, the role of global organizations, and reasons as to why the country of Primaria should open trade agreements with the United States to import goods from the U.S. Machinery Corporation. Each topic is explained thoroughly and provides examples from other developing nations so that Primaria can understand the benefits of trade and economic growth…show more content…
Although there are many instances where there is potential for growth, here are a few specific examples: opening your economy, benefits to your economy, taking advantage of comparative advantages, building partnerships, and increased competition. By creating this trade agreement, Primaria will open their economy and produce opportunities for growth in investments and joint ventures. We can see from China that when a country opens their import/export business, that opportunities for growth in investments and joint ventures increase. The trade agreement will bring benefits to the economy, which can also be seen from China. China’s economy has boomed since they have become open to international trade, and imports have played a very large role in this economic boom (Carbaugh, 2010, p. 254). This trade agreement will allow for Primaria to focus on their comparative advantage, while utilizing’s the United States’ comparative advantage. One of the United States’ comparative advantage is machinery production. ("U.S. Exports. Where is U.S. Comparative Advantage?"). When Primaria enters in to the trade agreement with the U.S., the U.S. will provide Primaria with imports from the U.S. Machinery Corporation. This import will be one of the United States’ comparative advantages, so by Primaria utilizing the U.S. comparative advantage, they will be able to spend
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