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Table of Contents

  1. Topic pack - Development economics - introduction
  2. 4.1 Economic development (notes)
  3. 4.1 Economic development (questions)
  4. 4.2 Measuring Economic Development (notes)
  5. 4.2 Measuring development (questions)
  6. 4.3 The role of domestic factors in economic development (notes)
  7. 4.3 The role of domestic factors in economic development (questions)
  8. 4.4 The role of international trade (notes)
    1. Role of international trade - introduction
    2. Trade problems (LDCs)
    3. Problems - over-dependence on primary products
    4. Price volatility of primary products
    5. Consequences of price volatility
    6. Price increases can also be problematic!
    7. Price volatility case study - tomatoes
    8. Price volatility case study - copper
    9. Trade strategies for growth and development
    10. Import substitution
    11. Import substitution case study - sorghum
    12. Export promotion
    13. Export promotion case study - Thai toy industry
    14. Trade liberalization
    15. The role of the World Trade Organization
    16. Background information
    17. The Doha round
    18. Case study - trade sanctions
    19. Bilateral and regional preferential trade agreements
    20. Case study of a bilateral preferential trade agreement
    21. Case study of a multilateral preferential trade agreement
    22. Some background reading
    23. Diversification
    24. Case study - diversification
    25. Diversification in Malawi - video
    26. Some background reading
  9. 4.4 The role of international trade (questions)
  10. 4.5 The role of Foreign Direct Investment (FDI) (notes)
  11. 4.5 The role of foreign direct investment (questions)
  12. 4.6 The role of foreign aid and multilaterial development assistance (notes)
  13. 4.6 The role of foreign aid and multilateral development assistance (questions)
  14. 4.7 The role of international debt (notes)
  15. 4.7 The role of international debt (questions)
  16. 4.8 The balance between markets and intervention (notes)
  17. 4.8 The balance between markets and intervention (questions)
  18. Print View

Role of international trade - introduction

African, Caribbean and Pacific Group of States member nations

In this section we consider the following sub-topics in detail:

  • Trade problems facing many economically less developed countries
  • Trade strategies for economic growth and development

In section 4.3 we concentrated on looking at some of the domestic factors that can affect the level of economic development of a country and the livings standards of its citizens. Globalization has resulted in people, goods, capital and ideas becoming increasingly internationally mobile. Many of the factors that influence the level of a country's development are international by nature.

World trade is very uneven and some countries rely more on it than others. The vast majority of trade coming in developed world relates to economic relationships with other developed economies. However, less developed countries trade mainly with developed economies.

Trading by less developed countries has been growing faster than that by developed economies, but the individual, country-by-country growth rates have differed considerably. Despite the financial crises of the late 1990s and the first decade of the 2000s, many of the 'Tiger economies' have continued to grow, while in most of Africa lower growth rates have been recorded.

This section considers a number of problems that affect the capacity of less developed countries to make the gains from international trade that are enjoyed by more developed countries.