Trade liberalisation would involve the removal of import controls and export subsidies. Producers, generally agricultural, in LDCs would have free access to markets in developed economies. This would enable them to take advantage of lower labour costs and generate export led growth and development. However, there are also disadvantages to this strategy. Infant industries in LDCs would be unable to develop behind protectionist barriers and the economy could find itself swamped with imports from technologically advanced developed nations.
It is likely that the best strategy for promoting development would be a combination of selective liberalisation and significant foreign aid.
marlinbito answered the question on July 6, 2018 at 09:34
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