The current global economy is characterized by extensive globalization of the markets. The accompanying international trade affects industrial nations and developing countries in differing degrees. The analysis of trade policy in developing countries can, in the process, be analyzed using the same tools as those for developed countries, namely industrial na-tions.
Earlier development stages of trade policy amongst developing countries were character-ized by protectionism and an orientation towards a domestic market which consequently led to a weak internationalization of these countries. It was not possible to decrease the distance between the classical industrial states since the industrial states themselves, in the context of the first phase of globalization, were able to significantly advance on a global scale.
As a result of the rejection of protectionism by means of changing political structures and the accompanying liberalization, it was therefore possible, in the early phases of globaliza-tion, whose origins lie in the end of the 19th and the start of the 20th century, for several developing countries to successfully advance in the wake of the general dynamic of inter-nationalization.
The share in the world good’s market; the volumes in direct investments and the inflows of portfolio capital were able to increase amongst these groups of countries, albeit not for all countries to the same extent.
As a result, the majority of developing countries today are tightly embedded in world trade. Moreover, these countries were capable of registering export quotas of 20% and 30%. The gap between the so-called OECD countries could be largely made up for.
In the course of early globalization, the OECD countries also dynamically developed with the consequence that many developing countries were, in turn, able to benefit from these global economic interactions. Today, the export revenue of OECD countries with develop-ing countries represents 25%. This is a 40% increase within the last 20 years.
The foreign trade of developing countries with OECD countries, on the other hand, ac-counts for merely 60% of the total foreign trade of developing countries in our present day. At the same time, there has been an emergence of foreign trade diversification in favor of exporting industrial goods by courtesy of developing countries which amounted to as much as 84% in 1996 which in 1996 accounted for as much as 84%.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Objective:
- Definition of developing countries in the economic sense of the word:
- Globalization and World Economy- Purpose of the Research:
- Distinction between emerging economies and developing countries:
- What distinguishes the earlier trade policy of developing countries?
- How were developing countries and their trade policy seized by globalization?
- Outlook and Summary
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This essay aims to illustrate and explain the development of trade policy in developing countries throughout different phases, particularly in comparison to OECD countries. It analyzes the trade policy in question, firstly defining and classifying developing countries. Furthermore, it explores the potential future consequences of a newly oriented trade policy in developing countries on the continued internationalization of markets, examining whether this can and should be viewed as a predominantly isolated case.
- Trade policy development in developing countries
- Comparison to OECD countries
- Defining and classifying developing countries
- Impact of new trade policies on market internationalization
- The role of globalization in shaping trade policies
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: This chapter provides a brief overview of the global economy's extensive globalization and its impact on industrial and developing nations. It highlights the importance of analyzing trade policy in developing countries using similar tools as those for developed countries.
- Objective: This chapter outlines the essay's objective, which is to examine the evolution of trade policy in developing countries, emphasizing its different phases and contrasting it with the policies of OECD nations.
- Definition of developing countries in the economic sense of the word: This chapter explores the lack of a standardized definition of developing countries and emerging economies in economic terminology. It delves into common characteristics associated with developing countries, such as low per capita income, income disparities, and a significant role of the primary sector.
Schlüsselwörter (Keywords)
The primary focus of this work revolves around the trade policies of developing countries, particularly in the context of globalization. Key themes include: developing countries, emerging economies, globalization, trade policy, protectionism, internationalization, OECD, primary sector, and economic development.
- Quote paper
- Rainer Schenk (Author), 2012, Trade policy of developing countries and emerging economies in the course of globalization, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/198594
