Table of Contents1. Introduction & theoretical background31.1 Importance of the topic31.2 Meaning of Liberalization of Trade31.3 Examples of Liberalization of Trade41.3.1. The North American Free Trade Agreement41.3.2 The European Union (EU)61.3.3 General Agreement on Tariffs and Trade (GATT)72. From theory to practice82.1. Advantages and Disadvantages of Liberalization of trade82.2. What led to liberalization of trade?113. Practical implications123.1. Impact on LDCs123.2. Examples for the impact on LCDs133.2.1. Fiscal impact of Trade Liberalization133.2.2. The impacts of Trade Liberalization on Employment and wages in Tunisian industries.153.2.3. Trade Liberalization and its impact on the Ethiopian Economy163.2.4. Egypt Non-tariff Barriers184. Conclusion225. References221. Introduction & theoretical backgroundThis paper is about Liberalization of trade and its impact on LDCs.
1.1 Importance of the topicFirst of all Liberalization of trade is important since it represents the global direction of trade. As International Trade reaches its peak, Liberalization of trade seems like the most natural thing to do.
A reduction of trade restrictions and the emergence of trade blocks and other forms of economic integration makes Liberalization of trade a very important topic, if not the most important one to discuss.
Liberalization of trade has been increasing day by day and is quite apparent now with all the forms of economic integration. This leads us to our second point which is the impact of Liberalization of trade on Less Developed Countries.
Less developed Countries are affected by this trend due to its tight relation with Economic Development. Trade is an engine of Growth, and has numerous contributions to the development of a country. During the research, there were pointed out some very important benefits that international trade can have on Economic Development, which will be discussed later on.
Critics on international trade also have a list of harmful effects of trade on Economic development which we will also...