1) eassy about What major arguments can you list to support the doctrine of free
ID: 1191147 • Letter: 1
Question
1) eassy about What major arguments can you list to support the doctrine of free trade? Why is the WTO important in maintaining the doctrine of free trade? What values and principles has the GATT/WTO promoted to liberalize international trade?
2) eassy about Why do some people and some countries advocated for a greater liberalization in international trade, meanwhile, some have favored more protectionism? Please apply both society-centered and state-centered approaches to support your argument.
3) Eassy about What are the major theoretical rationales behind the ISI (import substitution industrialization) strategy? How do you evaluate its success and/or failure? What developments were responsible for its termination in most Third World countries?
Can you please kindly answer all three question.
Explanation / Answer
1.Free trade and WTO
We know that free trade is policy of goods and services are imported or exported without government restrictions. The free trade is always encourage the trade between the nations. The WTO always agreeing the policy of free trade between the nations. The nations are agree the free trade they will not entertaine any trade regulations.
WTO favours the lowering of trade restrictions between the nations. The WTO is a international organisation to promote the policy of free trade.
The WTO promotes liberalized policy through the priciples:
1. Most favoured nation- Under this principle the WTO treates other peoples are equally. Under this principle the trading partner cannot discriminate the policy through the restriction. Under MFN restriction give equal chance to all countries in the policy of trade.
2. Promoting fair competition: Another important policy of WTO to promote fair competition between the trading partner.
3. Encourage the developmet
4. Open trade
2. When a trading country offers liberalized trade policy will encourage development of the country. The opening up of the trade between the nations will promote all sectors of the economy. It will improve the efficiency of improve the manufacturing of the products. It will reduce the cost of production between the nations.
Protectionism
We know that protectionism means that restraing trade between states or countries in the methods of tarrif on the imported commodities. Also it will restrict the quata. This will lead to fair competion between the firms.
Society centered approach
In the society centered arguments is always the demand side of the policy approach. In this approach the various peoples or nationas are compete one another to support protectionist policies. This always accepts the demands of labour unions, interest groups, etc.. In this policticians are no role in the trade policies. The government are always accepts the demands for the society. After the demands government formulate policy.
State centered approach
The state centred approach is more focus on formal government. The policy under state centered approach is taken rationally or uniformily. So the state centered policy is also known as new institutionalism. Because the policy is concentrated on state rather than a society. Under this trade policy is entirly focused on inerest groups or politicians.
3.
Import substitution we means that goods imported from abroad should be produced within the country.
The import substitution strategy is obtained when:
1. New industries will set up in the country
2. research is conducted for the production
3. Made agreement between the foriegn countries
4. protction is granted to infant industries
The advantages of import substitution policy
1. Increase the domestic employment
2. reduce the facing global economic crisis.
3. Reduce the trasportation costs
4. reducing labour non intesive industry.
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