why do developed countries want developing countries to liberalise their trade and investment? what do you think should the developing countries demand in return?
Answers
Answer:
Explanation:
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.
1. The economy is driven by the profit motive. Most of the developed countries in the world are capitalist in nature. They want the developing countries to liberalize their trade and investment in order to exploit the market and resource base of developing nations for their profit motives.
2. The developing countries in return must ask for favorable working conditions for their citizens, better infrastructure and transfer of technology. This not only helps in creating a strong economic base but also help in developing the long run.
- Apart from this, they can ask for the exporting of goods which are in surplus in their economy so that the balance of trade is established. The system of trade and investment should favor a win-win situation for the nations.
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