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TRADING PROBLEMS OF
DEVELOPING COUNTRIES
BY MANISH SHIVALE
Email id : manishshivalerockstar@gmail.com
LESS DEVELOPED COUNTRIES
Barriers to trade within the
regional blocks
• the primary barrier to trade
with its regional partners is the
poor physical infrastructure
development in terms of
quality, maintenance and
connectivity within the
organization.
• for example Uganda lacks
railway connection to Rwanda,
Sudan which increased trade
transaction and depressed
trade opportunities within
regions.
• Persistent interference with ground transportation,especially
truck transportation,characterised by arduous customs and
roadblocks checks
The EAC and largely COMESA partner states are
currently entwined in exporting substitutable products
rather than complements. For example, all the EAC
partner states export to each other, inter alia, plastics,
dairy products, food stuff, soap products, cement,
paints and varnishes, and vegetable, fats and palm oil.
This has generated unnecessary competition within the
single market, which in turn has limited the gains
from trade, especially for Uganda because it is landlocked
and incurs more production costs for the transportation of
some raw materials. Thus, Uganda needs
to rapidly diversify its exports, especially in the services
industry, in order to reap the gains of integration.
• Disadjustment in the
respective partner migration
policies toward skilled labor to
facilitate the flow of labor and
to address persistent skills
shortages in specific fields.
EMERGING MARKETS
Highly dependence on Advanced Nations
• majority of exports go to advanced nations and imports come from
these advanced nations
• unstable export
markets
• exports are based on primary
products like agricultural
products , raw materials and
fuels.
• during poor harvest or
decrease in demands for
nation's specialised
product,significantly reduces
revenues from export.
• disrupt domestic income and
damage employment levels.
• limited market access
• protectionism and trade
barriers imposed by advanced
nations has been hindrance to
nation's market access.
• global protectionism in
agricultural.
• the unwanted surplus that
resulted from government
subsidies are dumped into
world market at lower price ,
which in turn decreases prices
for agricultural commodities in
market and reduce export
revenues significantly for
developing countries.
• landlocked countries
in trade
• dependence on neighbours’
infrastructure;
• dependence on sound cross-
border political relations;
• dependence on neighbours’
peace and stability; and
• dependence on neighbours’
administrative practices.
Trading problems of developing countries

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Trading problems of developing countries

  • 1. TRADING PROBLEMS OF DEVELOPING COUNTRIES BY MANISH SHIVALE Email id : manishshivalerockstar@gmail.com
  • 2.
  • 3. LESS DEVELOPED COUNTRIES Barriers to trade within the regional blocks • the primary barrier to trade with its regional partners is the poor physical infrastructure development in terms of quality, maintenance and connectivity within the organization. • for example Uganda lacks railway connection to Rwanda, Sudan which increased trade transaction and depressed trade opportunities within regions.
  • 4. • Persistent interference with ground transportation,especially truck transportation,characterised by arduous customs and roadblocks checks The EAC and largely COMESA partner states are currently entwined in exporting substitutable products rather than complements. For example, all the EAC partner states export to each other, inter alia, plastics, dairy products, food stuff, soap products, cement, paints and varnishes, and vegetable, fats and palm oil. This has generated unnecessary competition within the single market, which in turn has limited the gains from trade, especially for Uganda because it is landlocked and incurs more production costs for the transportation of some raw materials. Thus, Uganda needs to rapidly diversify its exports, especially in the services industry, in order to reap the gains of integration.
  • 5. • Disadjustment in the respective partner migration policies toward skilled labor to facilitate the flow of labor and to address persistent skills shortages in specific fields.
  • 6. EMERGING MARKETS Highly dependence on Advanced Nations • majority of exports go to advanced nations and imports come from these advanced nations
  • 7. • unstable export markets • exports are based on primary products like agricultural products , raw materials and fuels. • during poor harvest or decrease in demands for nation's specialised product,significantly reduces revenues from export. • disrupt domestic income and damage employment levels.
  • 8. • limited market access • protectionism and trade barriers imposed by advanced nations has been hindrance to nation's market access. • global protectionism in agricultural.
  • 9. • the unwanted surplus that resulted from government subsidies are dumped into world market at lower price , which in turn decreases prices for agricultural commodities in market and reduce export revenues significantly for developing countries.
  • 10. • landlocked countries in trade • dependence on neighbours’ infrastructure; • dependence on sound cross- border political relations; • dependence on neighbours’ peace and stability; and • dependence on neighbours’ administrative practices.

Editor's Notes

  1. The very idea of Free Trade is, of course, a noble one. The idea is to bring the third World nations of Latin America, Asia, and Africa into a fair competition with, and economic parity with, the Western countries. The many strong pro- and con- convictions of a number of respected authors do deal with the fact that the original framework, which was based on the Industrial Revolution has vanished. It has already been mentioned that the idea of a “ borderless economy” is now a fait accompli. The world, therefore, no longer “consists of a series of closed national economies, each with its unique set and factors of production….But there is a problem with this view of the world.
  2. There are three economic developments in the past decade that make “International Business” and its management a vital means of economic domination. First, there is the communications explosion. Second, the development of the “euro” currency which makes the whole of Europe (the EU) a predominant economic and fiancial force to be reckoned with. And, the third development is the rise and fall and rise of various Asian nations