Why do developed countries want developing countries to liberalise their trade and investment? What do you think the?
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Answer:
Developed countries want developing countries to liberalised their trade and investment because then the MMCs belonging to the developed countries can set up factories in less expensive developing nations,and thereby increase profits, with lower manufacturing costs and the small scale price. In my opinion the developing countries should demand, in return for some manner of protection of domestic producers against competition from import , also charge should be levied on MNCs looking to set base in developing nations.
WTO is supposed to allow free trade for all. In practice, it is seen that the developed countries have unfairly retained trade barriers. On the other hand, WTO rules have forced the developing countries to remove trade barriers. Developed countries produce goods at a very low cost. The surplus goods are sold in other countries at a fairly higher price. This way, they earn profits. So developed countries want developing countries to liberalize their trade and investment.
The developing countries should demand for fair trade practices to be followed by the developed countries under which they should stop giving subsidies to their agricultural sector. Trade barriers put unfairly should be removed.