International Trade Has Brought Huge Gains On A Number Of Countries Around The World

1472 WordsMay 27, 20166 Pages
1.1. Statement of the research problem International trade has brought massive gains to a number of countries around the world. It has helped spread technology, enhanced competitiveness, raised productivity, and gave consumers with a number of choices. These potential gains from trade have motivated countries to aggressively negotiate for trade relations and explore new trade opportunities. For instance, a study which was carried out by World Trade Organization (WTO) (2008), for the period 1950-2007 shows that export increased by 2.7 percent faster than gross domestic product (GDP). Obviously, regional economic integrations played a vital role in promoting world trade in terms of both quantity and quality of goods and services traded. In light of persistent political and economic problems in Africa, regional economic communities can play a major role in solving some of the basic economic and political challenges that Africa is facing right now. When economies of countries are intertwined through a number of joint projects, there are a number of advantages that come along with it. As a result, regional trade areas have been proliferating in Africa in the past half a century. This rapid increase in RTAs reflects the increasing involvement of African countries in international trade. In addition, the establishment of RTAs in Africa go beyond the economic objectives. On the one hand, they are aimed at increasing industrialization, trade, and investment; and on the other
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