Trade Liberalization

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MBA program Business Economics Assignment 1 Trade Liberalization Prepared by : Rawda Sayed Mohamed Hassan Supervised by: Dr/ Khaled Hanafy Table of Contents Definition of trade liberalization3 Liberalization VS Protectionism3-4 When & How started5-7 WTO5 Main functions of WTO 6 Principles of trade6-7 Gains from trade liberalization8-9 Effect of trade liberalization on developing countries10 Effect of trade liberalization on Egypt10-11 1) Definition of Trade Liberalization: It refers to the removal or reduction of trade practices that prevent free flow of goods & services between one nation & another. This includes tariff & non tariff barriers such as (duties, export…show more content…
The trade liberalization was accompanied by liberalization of international capital markets, international agreements and conventions and unified rules concerning protection of property rights, including intellectual property rights related to proprietary knowledge. The outcome of these liberalizing and integrating processes is known as globalization. The World Trade Organization (WTO) is an organization that intends to supervise and liberalize international trade. The organization officially commenced on January 1, 1995 under the Marrakech Agreement, replacing the General Agreement on Tariffs and Trade (GATT), which commenced in 1948. The organization deals with regulation of trade between participating countries; it provides a framework for negotiating and formalizing trade agreements, and a dispute resolution process aimed at enforcing participants' adherence to WTO agreements which are signed by representatives of member governments and ratified by their parliaments. Most of the issues that the WTO focuses on derive from previous trade negotiations, especially from the Uruguay Round (1986-1994). This means that the idea of liberalizing trade started since 1948 after the Second World War order to revive the world economy and achieve rapid economic growth through enhancing the international economic cooperation. For this reason the industrialized countries (Developed countries) agreed on establishing the international trade organization to organize all trade
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