Trade liberalization and third world countries

Abstract

Trade liberalization is the removal or reduction of restrictions of barriers on the free exchange of goods between nations. Integration into the world economy has proven a powerful means for countries to promote economic growth, development and poverty reduction. This paper examines the impact of trade liberalization on third world countries. The major advantages and disadvantages of trade liberalization are discussed. Third world countries and their major characteristics are also highlighted in this paper. The paper suggested among other things: the provision of proper framework for establishing prices of raw materials and primary products so as to stabilize export income earnings of the third world countries