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Essay / Research Paper Abstract
This 3 page paper examines the way liberalisation may or may not benefit consumers globally. The paper looks at the benefits in developed and developing countries and differentiates between domestic and international trade liberalisation. The bibliography cites 5 sources.
Page Count:
3 pages (~225 words per page)
File: TS14_TElibcons.rtf
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Unformatted sample text from the term paper:
and consumers globally. Liberalisation means the freeing of the economy or industry and opening it up to free trade. However, despite the many proponents of liberalisation and a long term
benefit, such as the International Monetary Fund (IMF) that will fatten cite liberalisation as a requirement for the aid that loans may create. Liberalisation is based on the
idea of free trade; the idea is simple, in theory no trading partner will have a preferable trading status to others, and as such all will be equal. For countries
that are weak, free trade will enable to them to better their economies and become developed countries, whereas the developed nations will be spending money that, due to competitive advantages,
will benefit the developing countries as well as give them goods at a good price (Demske, 1997). In this light free trade appears to be a boon that will benefit
all who partake in it. However, free does not always mean fair, so we have to consider will free trade equal fair trade? We can use this argument to
show that liberalisation always is not fair. The way in which there is an income disparity between the different nations is not under dispute. For example a country such as
Guatemala has 60% of the population below the poverty line and a purchasing parity GDP of only $3,700 per capita in 2001 (CIA, 2005). Here there is a need for
more income, and therefore trade can allow the sales fo goods, but as trading power is not equal the real profit and benefit is with the more powerful trading partners.
There is also a lack of evidence to show that a trickle down effect occurs also that those who would be consumers and seek to benefit from increased income as
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