Trade Policies for the Developing Nations (Essay Sample)

Trade Policies for the Developing Nations
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Trade Policies for the Developing Nations
Introduction
Did you know that every developing country has its trade policies? Trade policies are essential because they help determine the market's size for products of companies, and they influence local and foreign investments. According to Nicita (2013), trade policies help set guidelines and regulations for the world-to-country exchange. The objectives of trade policies are to increase market access for the exchange of goods and services, provide protection, and increase global integration. The main instruments of trade policy include tariffs, non-tariffs, export taxes, and quantitative restrictions. Tariffs serve as tax. It adds to the cost incurred by the consumers of imported products. They help to favor the price of locally produced goods over the imported ones, increasing government revenues. Examples of trade policies in a developing country like Albania include quotas, subsidies, and currency manipulations. Based on the reports, trade policies in developing countries have been a primary focus of analysis by economists in the past. Therefore, this paper aims to discuss trade characteristics, problems, trade reforms, the role of IMF and the world bank in these reforms, and the policies the government can pursue to increase economic growth in Albania.
Trade characteristics
Albania's trade characteristics include low comparative cost, governmental control, need for intermediaries,