Report on Protectionism and Free Trade

Added on - 01 May 2020

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Running head: PROTECTIONISM AND FREE TRADEProtectionism and free tradeName of the Student:Name of the University:Author’s Note:
PROTECTIONISM AND FREE TRADETable of ContentsIntroduction:....................................................................................................................................2Discussion:.......................................................................................................................................2Industries before and after industrial revolution:.............................................................................2Main trade partners and import and exports for past 10 to 15 years:..............................................4FDI in Egypt and how the stakeholders are affected:......................................................................7Different trade agreement with other nations:.................................................................................9Effects of different trade agreements:............................................................................................12Conclusion:....................................................................................................................................14References list:...............................................................................................................................15
PROTECTIONISM AND FREE TRADEIntroduction:The report is prepared to demonstrate the change experienced by Egypt due to industrialrevolution. Discussion incorporates era of Egypt before and after revolution. Analysis has beendone by illustrating the impact on import and export of nation and its flow of foreign directinvestments. Various foreign trade agreements that Egypt has entered into and its political, socialand economic impacts have been discussed. Egypt was mainly an agrarian country beforewitnessing industrial revolution. Considerable changes were brought resulting from revolution(Abdelrahman 2014).Discussion:Industries before and after industrial revolution:The phase of industrial revolution was identified for the period roughly from 1750 to1825. Some of the major industries in Egypt were textile industries due to higher cottonproduction. Before industrial revolution, Egypt was not well-equipped with social, political andeconomic tools. Due to relatively higher production of cotton, the economy of Egypt was knownas an agricultural economy. Revolution transitioned the agricultural development to capitalism.The industrial revolution of 1952 gave birth to industrialization in Egypt (Alexanderet al.2014). Industrialization of Egyptian economy were affected in broader way resulting from theagricultural sector industrialization. Practices and structure of Egyptian agriculture wassignificantly changed due to increasing cotton export on large scale. Agricultural land wastransformed into private property due to rapid expansion of cultivation of cotton and therebyrestructuring of agrarian social relations. In year 1876, nation went bankrupt and during thistime, one of the major part of Egyptian economy was exporting of cotton. Rural economy
PROTECTIONISM AND FREE TRADEintegration into broader market economy was another development of Egyptian agriculture.Investment of European capital was done in projects of irrigation system, railroads and ports.Investment was made in many industries such as steel, textile, paper, fertilizers, mineralsand iron. Reason behind investment made in such industries was to improve industrialization andto attain a level of self-sufficiency. After industrialization that is since year 1961, the import ofraw materials increased significantly and consequently, it has speeded up the industrialization.Some of issues that was faced by nation involved exchange and fiscal crisis. Egypt facedincreased recession resulting from limited flow of funds due to war periods in sixties andseventies. An open door policy was initiated by government from year 1975 to 1985 that led toencouragement of domestic and foreign investments. After the era of revolution, importrestriction policies was imposed by government that leads to entrepreneur shifting to industrialdevelopment against engaging in imports. One of the major part of story of development ofEgypt is industrialization (Daoud 2014). Industrialization in Egypt can be explained by breakingdown in three periods. During the first half of nineteenth century, focus of nation was promotionof modern industries that were sponsored by state. In second period of British influence from1890 to 1920, there was limited development of industries. The reason is attributable to the factthat during that period, the attempt of Egyptian to industrialize was discouraged by British andmore emphasis was on promotion of cultivation of cotton. Growth of industries under tariffprotection was witnessed in year 1930 and during 1950s, industrialization was at its peak.Development of Egypt as an export economy was witnessed due to failure of industrializationefforts in wake of period of Mohammad Ali. During Great Depression, export led growthweakened and development of Egyptian firms was witnessed during inter war period. One ofexample of phenomenon of export based economy was Misr Bank that had direct ties to
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