Trade Flashcards
What are the three argued requirements for trade to lead to development?
1) Western style capitalism and democracy
2) Growth needs to trickle down and reach new industries
3) Free trade and neoliberalism
What are some of the example of countries that did not have neoliberalistic policies that managed to develop ?
Singapore, Malaysia, South Korea
What are some of the possible limitations experienced by countries that undermine the suggested requirements for development through trade?
1) Despite free trade, they cannot compete with developed countries that invest in technology
2) LEDC’s usually have agriculture as main sector, but they are unable to compete with developed countries that subsidise agriculture
3) generated wealth form growth does not always trickle down due to corruption
