Does Trade Help A Country

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Trade is the most sustainable way to help a country develop. Discuss this. (40) Trade is the process of buying or selling various items, specifically in this sense across countries and making exchanges with countries from all over the world. Trade has been a way for development since England colonised parts of Western Africa and used it for trade routes. Trading involves the utilisation of communication, of which occurs though factors like globalisation in order for an agreement to take place or not. One of the reasons that trade is so frequent is that some countries farm or produce things that another country might not, for example; in USA, the demand for chocolate is high, and without the purchasing of cocoa beans from places such as Brazil, they wouldn’t be able to supply it. This agreement of trade between countries can work the other way around, Since America are distributors of huge amounts of materialistic goods, a country like Brazil might have to import them in order to be able to supply them to their country. Usually, trade involves the payment of taxes, however in recent times, trading blocs such as NAFTA have removed all forms of tariff, and this is just one of many ways that trade can operate. There are many positives which surround trading between nations, specifically; if a country such as Malawi or Liberia wish to trade with other countries, since they are poor countries, it means that exchanging goods can benefit both countries. This process will increase the wealth of a country, especially in places where the main form of exports are agriculture, because in return for selling things such as fruit and vegetables, they will gain money which can be used for buying necessities or helping to fund projects like new schools. Sometimes, a country may establish a permanent agreement with a country or company to export goods regularly, for example how Costa often imports coffee from poorer countries known as a ‘fair trade’ agreement. This setup has numerous benefits for a poorer country. Firstly, it establishes a professional relationship between the country/company and the poorer country, which can have numerous benefits since it puts the country’s name on a map and can lead to further trading opportunities in the future. Secondly, if a developing country is able to obtain stable sources of income from exporting goods, it will help a country to develop in a way which will influence a multiplier effect. A multiplier effect is the idea that as one thing is established, in this case the sustainable trade of a good to another country, that more and more things will begin to happen, which can eventually help a country to move along the developing continuum and hopefully help reduce the gap between richer and poorer countries. As this process moves forward, the country may be able to establish better …show more content…
By selling this oil, Dubai was able to generate revenues for themselves and help develop infrastructure, while also helping a MDC who may be in need of electricity. This can be furthermore beneficial for a developing country if they have a resource which is highly in demand like natural gas, as they can charge higher prices which will help them grow. In addition, there have been various organisations like the ‘world trade organisation’ who’s aim is to establish trade worldwide without taxes which might make poorer countries unable to trade. This is a benefit to poorer countries as they would be able to trade with a large variety of countries, and large volumes of trade will help them on a larger scale. Trade of this calibre can improve the standard of living for developing countries since the GDP will rise, and trade will act as a long term, sustainable way for a country to make …show more content…
For trade to work effectively and for rapports to be established between countries, one would assume that factors like capitalism and democracies are strong. With both of these, there is a hunger for a stronger GDP and development for the benefit of the country. However, within socialistic, communistic countries like Cuba, the idea of trade might only be approved if it benefits the party involved. This is a problem and suggests that a country run by communistic or dictatorships might only trade if there is a direct benefit for the dictator. To add, poorer countries may have

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