Trade Liberalization In Vietnam Case Study

One of the most debated areas of global economic growth is the relation between trade liberalization particularly the openness in trade, and the reduction in trade barriers with poverty alleviation. Many economists, mainly economic liberals view the emerging pattern of global production and decline in poverty as a support for their claim that trade liberalization plays a major role in global poverty alleviation. On the other hand, some scholars argue that trade liberalization brings income inequality to the country. However, in my stand, a country’s development and ability to reduce poverty after the adoption of trade liberalization completely depends on how the government implement and adapt to the policies which have the capacity to affect the country’s economy positively. The aim of this paper is to support my claim with the case study of Vietnam, a country which reduced …show more content…
According to the book “Introduction to political economy”, written by Balaam and Dilman, international trade occurs when goods and services cross national boundaries in exchange for money or the goods and services of another nation (2014). Furthermore, there are three perspectives on international trade, which are mercantilists, economic liberals, and structuralists views. The ideology of economic liberalism or trade liberalization suggests that the world was supposedly becoming a global workshop where everyone could benefit from trade, was better off when the role of the state in the economy was guided by the “invisible hand” of the market and role of the state is minimized (Balaam & Dillman,