Trade Is The Most Sustainable Way For Development

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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, …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…
It is very hard for a LDC to trade with a country with high tax levels, since they will not be able to afford it. This works the same way around as some MDCs may be reluctant to trade with a country who have tariffs since they may be able to trade with a country within a trading bloc to make trade free. These restrictions can easily throw a countries development off-board, and in places such as the continent of Africa, a trading bloc may be worthless since the majority of exports leaving Africa are to be shipped to China (12%) and India (5%) respectively. Another issue is that sometimes, the country who wishes to develop may not actually have anything to trade that another country might want, with exclusion of non-renewable energy sources which are difficult to find. For example, if multiple countries produce the same products, it seems more convenient and helps reduce tax if the buying country solely buys from one country. This means that for some countries they will miss out on selling their goods. This can also happen the other way around, if a country who have exported goods want to import something to help them increase production or buy supplies, a the poorer country might not be able to afford to import the goods that a richer country has, since they will not produce competitive prices as they might have

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