Discuss five reasons why less developed countries are reluctant in implementing free trade agreement

      

Discuss five reasons why less developed countries are reluctant in implementing
free trade agreement

  

Answers


Davis
i) Avoid unfair competition from developed countries with
superior products as it
may/could lead to loss of market for their products.
ii) Prevent dumping of inferior goods by developed countries
which may have adverse
effects on the economy.
iii) To safeguard local employment this may suffer due to free entry
of imports.
iv) Reduce balance of payments deficits; as a result of payment for
imports exceeding receipts form exports.
v) Safeguard against government revenue otherwise earned through
taxation of exports/imports.
vi) Safeguard against government revenue otherwise earned through
taxation of exports/imports.
vii) Avoid erosion of cultural values arising from unrestricted
interruption in free trade
viii) Avoid over exploitation of resources which may be
depleted/exhausted due to increase demand in free trade.
ix) Avoid imported inflation which may be caused by inflow of
highly priced imports.
x) Prevent entry of harmful goods/ services which may have
adverse effects on the health of the people/accept examples if
harmful goods as explanation.
Githiari answered the question on September 22, 2017 at 22:35


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