World Trade Dynamics: Developing Nations' Changing Participation

This essay analyzes the evolving role of developing countries in global trade, emphasizing their increasing significance in the global economy. It explores the impact of trade liberalization and the reduction of trade barriers, such as tariffs and quotas, on these nations. The essay discusses the economic consequences of these changes, including the rise in exports, the growth of manufacturing sectors, and the effects on both personal and organizational levels. It examines how these changes influence living standards, job creation, and the reduction of inequality, while also addressing the challenges and opportunities for businesses in terms of market access, technological advancements, and global competitiveness. The conclusion highlights the positive impacts of increased trade participation on income, poverty reduction, and GDP growth in developing nations.

Running head: CHANGING PARTICIPATION OF DEVELOPING COUNTRIES IN
WORLD TRADE
CHANGING PARTICIPATION OF DEVELOPING COUNTRIES IN WORLD TRADE
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1CHANGING PARTICIPATION OF DEVELOPING COUNTRIES IN WORLD TRADE
Table of Contents
Introduction................................................................................................................................3
Application of this article in professional life and organization................................................3
Conclusion..................................................................................................................................4
References..................................................................................................................................5

2CHANGING PARTICIPATION OF DEVELOPING COUNTRIES IN WORLD TRADE
Introduction
The study focuses on the changing participation of developing countries in world
trade. Developing nations play significant role in global trade. The rise in exports in Middle
East, Central Asia and North Africa over the last few years has further raised the weight of
developing nations in trade (Mann & Afzal, 2013). In most of the developing nations, trade
has developed at much faster rate and hence their participation in global trade led to growth
in their respective economy. In recent years, it has been noted that substantial decrease in the
trade policies as well as barriers inhibits the participation of developing nations in trade.
Application of this article in professional life and organization
The liberalization in trade has occurred slowly in the developing nations. Tariff as well as
non- tariff barriers that include quotas, licences became ubiquitous. Moreover, restrictions in
foreign exchange often imposed huge extra taxes on these nations trade. The protective
influence of quotas, tariffs and licenses in these developing nations are reinforced by
deformations in the market of foreign exchange (Amiti & Cameron, 2012). These
deformations involve overvaluation in exchange rate along with methods for allocating
limited foreign exchange. In addition, the policymakers of few developing nations mainly
aim their effort in General Agreement on Tariffs and Trade (GATT) on attaining
enhancement in entrée to the markets of industrial nations under special treatment. This
approach facilitates most of the developing nations by enhancing their TOT (terms of trade).
On the contrary, it has negative economic consequences in few developing countries. The
developing nations also brought reforms in trade patterns by lowering their barriers in trade
and increasing exports of manufactures (Whalley, 2016). This leads to rise in the

3CHANGING PARTICIPATION OF DEVELOPING COUNTRIES IN WORLD TRADE
manufactures share. The underlying reasons behind these changes in export patterns in the
developing nations include-
 High accumulation rate of both human as well as physical capital
 Rapid increase in education per labourers in the organizations
This changing participation of developing nations in global trade influences both the
personal life and the organizations. Decline in trade barriers improve the living standards of
the people in the developing nations. This specially benefits the poor people as creation of
several new jobs occurs for unskilled labourers, which raises them to middle class. As a
result, personal or professional life of people improves and thus leads to decline in inequality
among the nations.
As the manufacturing sector remains a vital force in developing economies, this reduction
in trade barriers and rise in exports of manufactures brings new opportunities as well as
challenges to the organizations (Kunnanatt, 2013). Opportunities come in the way of entering
in new markets, switching over to new resources or technology and expansion of business in
global market. On the other hand, the organizations face challenges of huge competitiveness
of other nations regarding R&D capabilities, innovations in designing of product and
expertise workers in data analytics.
Conclusion
From the above assignment, it can be concluded that this changing participation of
developing nations in trade increases the overall income of the respective economies.
Moreover, it reduces the poverty level in the nations and opens new opportunities for
business organizations. This in turn increases the Gross Domestic Product (GDP) of the
developing nations.

4CHANGING PARTICIPATION OF DEVELOPING COUNTRIES IN WORLD TRADE
References
Kunnanatt, J. T. (2013). Globalization and developing countries: A global participation
model. Economics, Management and Financial Markets, 8(4), 42
Amiti, M., & Cameron, L. (2012). Trade liberalization and the wage skill premium: Evidence
from Indonesia. Journal of International Economics, 87(2), 277-287.
Whalley, J. (Ed.). (2016). Developing Countries and the Global Trading System: Volume 1
Thematic Studies from a Ford Foundation Project. Springer,55(1),88-95
Manni, U. H., & Afzal, M. N. I. (2012). Effect of trade liberalization on economic growth of
developing countries: A case of Bangladesh economy. Journal of Business Economics
and Finance, 1(2), 37-44.