1 of 5

Write now Article Tools

The Theoretical Justifications of International Trade and the Regulation of International Trade Under the WTO: Implications for Developing Countries

Proponents of notable international trade theories like the theory of comparative advantage have sought to present the immense benefits that accrue to nations when they participate in trading with one another. The fact that nations stand to gain mutual benefits from trading with one another is perhaps one without contention. Mutual benefits however can only accrue to nations involved in trade with one another if there are rules that make the enjoyment of these benefits practicable. In effect, benefits from international trade go as far as the rules under which the international trade regime is organised. As the main protagonist and regulator of international trade, the WTO's rules based system is one that is inescapable in any analysis of international trade. With developing countries forming the majority of the 150 strong membership of the WTO, their fortunes in the international trading system is not one that can be analysed based on mere bookish' theories that propose justifications of international trade. Analysis of the substantive trade rules in operation under WTO should be a core practical focus in any proposition that seeks to justify or criticise the practice of international trade.

International trade', free trade' and economic globalisation' are terms that have come to represent the surge towards freer economic transactions amongst countries transcending geographical boundaries of states and continents. According to the Encyclopaedia Britannica, free trade' is a policy by which a government does not discriminate against imports or interfere with exports.'(http://www.britannic a.com) Van den Bossche (2005), commenting on economic globalisation, has also posited that:
"Economic globalisation is a multifaceted phenomenon, which undoubtedly is not yet fully understood. In essence, however, economic globalisation is the gradual integration of national economies into one borderless global economy. It encompasses both (free) international trade and (unrestricted) foreign direct investment."

From the forgoing it may be argued that the core principle of free mobility of economic factors across national borders is central to the conception and phenomenon of international trade, free trade and economic globalisation, and these terms could relatively be used interchangeably, at least, within the above stated context.

Other

• 1
• 2
• 3
• ...
• 12
• next page >>

Add your voice

Know something about Critique: The Libertarian free trade argument?
We want to hear your view. Write now!