Sample Essay on:
How the WTO and International Politics Constrain the Potential for Growth in Developing Nations through Comparative Advantage

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Essay / Research Paper Abstract

This 3 page paper looks at how why the international political environment and the operation of the World Trade Organization A constraint rather than promote growth in developing nations. The paper considers how developing nations will often go through comparative advantage, and then discusses some of the ways in which World Trade Organization regulations, the general environment undermine and limit that growth. The bibliography cites 4 sources.

Page Count:

3 pages (~225 words per page)

File: TS14_TEWTOdevel.doc

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Unformatted sample text from the term paper:

of international trade, facilitating the creation of wealth through bringing in money for goods or services that are exported. The support for growth in this manner is supported by the theory of comparative advantage; where the developing nations, with lower input cost have the potential to gain business by supplying to goods or services at cost lower than the potential import partners (Seyoum and Abraham, 1999). This cost advantage would attract not only the ability to make sales, but also investments from firms that wish to set up in the lower cost areas, which would also facilitate the transfer of knowledge into the local economy which will support the development of local companies. This was seen in the way that much of Southeast Asia has been developed. However, when looking at the current tradition condition and both the role and influence of the WTO as well as world politics in general, despite the rhetoric, are placing severe constraints on the potential for growth. There are many examples of these constraints which demonstrate not only the tools, but the underlying culture and attitude that appears to support constrained growth only, with measure that appear to support the stronger status of the existing first world nation economies. A good example of this was the multi-fibre agreement. Many developing countries, such as China, have had the potential to produce textiles and associated goods, such as clothing, at a much lower cost than many developed countries. This may be seen as a prime example of comparative advantage, where the developing nations should, theoretically, be able to benefit form significant exports. However, multi-fibre agreement is an example in the way that that growth through comparative advantage is constrained. The developing nations, concerned at the potential impact on their own industries, with the job ...

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