Why do developed countries want developing countries to liberalize their trade and investment? What do you think should the developing countries demand in return?

Q.5:- Why do developed countries want developing countries to liberalize their trade and investment? What do you think should the developing countries demand in return?

 

Answer:-

WTO is supposed to allow free trade for all. In practice, it is seen that the developed countries have unfairly retained trade barriers. On the other hand, WTO rules have forced the developing countries to remove trade barriers. Developed countries produce goods at a very low cost. The surplus goods are sold in other countries at a fairly higher price. This way, they earn profits. So developed countries want developing countries to liberalize their trade and investment.

The developing countries should demand for fair trade practices to be followed by the developed countries under which they should stop giving subsidies to their agricultural sector. Trade barriers put unfairly should be removed.