Does Openness trade economically developed smaller countries in Africa ?
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Trade Openness Affect the Economic Development of Smaller African Countries
The research question explores how trade openness affects the economic development of smaller African countries. The exposure that these countries are offered through trade openness improves their economic development through various ways. Interestingly, trade openness improves the economic development of the countries since they are offered with a chance to showcase and sell their goods and services to other economies. I believe in the logic that openness improves the economic development of these countries. The following points support my stand.
Most of these countries often rely on imports, which are useful in improving their economic agenda. Any forms of trade restrictions, therefore, have been reduced due to the extent of trade in their economic growth. Such developing countries are dependent on investors who are only acquired through the openness of trade. Foreign investments stir up the host economic development as investors start up production plants that create revenue and creating employment.
Still, the exchange of technological advancements, which is useful in economic growth is facilitated due to trade openness. Most of their partners in trade are accustomed to high-end technological equipment, which affects their financial growth, due to the returns affiliated with the same. Kenya, for example, imports affordable motor vehicles from Japan, for the purpose(s) of reselling.
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The government charges a hefty clearing fee at the port as this is one of the ways they improve their economic growth. As mentioned, the ability of these developing countries to benefit from their trade partners ensures that any form(s) of restrictions are impeded, while advocating for trade openness.
Furthermore, it is impossible to talk about trade openness without mentioning the role played by globalization. Globalization is primarily contributed by trade openness whereby most large and developed countries have expanded their economic activities to smaller African countries. In that case, many concepts and trade ideas are transferred from the developed to the less developed countries (Frankel, and Romer 382). Besides the market, economic ideas and practices are shared with the smaller African countries which help them boost and improve their economies benchmarking on the large economies.
In conclusion, openness in trade has proved that it affects small African countries in several ways including, introducing technological advancements, revenue through the sale of imports, and sharing of development ideas which help them grow their economies.
Work Cited
Frankel, Jeffrey A., and David H. Romer. “Does trade cause growth?” American economic review 89.3 (1999): 379-399.
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