Benefits of trade for developing countries
1. Trade can help boost development and reduce poverty by generating growth through increased commercial opportunities and investment, as well as broadening the productive base through private sector development.
2. Trade enhances competitiveness by helping developing countries reduce the cost of inputs, acquire finance through investments, increase the value added of their products and move up the global value chain.
3. Trade facilitates export diversification by allowing developing countries to access new markets and new materials which open up new production possibilities.
4. Trade encourages innovation by facilitating exchange of know-how, technology and investment in research and development, including through foreign direct investment.
5. Trade openness expands business opportunities for local companies by opening up new markets, removing unnecessary barriers and making it easier for them to export.
6. Trade expands choice and lowers prices for consumers by broadening supply sources of goods and services and strengthening competition.
7. Trade plays a role in the improvement of quality, labour and environmental standards through increased competition and the exchange of best practices between trade partners, building capacity in industry and product standards.
8. Trade contributes to cutting government spending by expanding supply sources of goods and services and strengthening competition for government procurement.
9. Trade strengthens ties between nations by bringing people together in peaceful and mutually beneficial exchanges and as such contributes to peace and stability.
10. Trade creates employment opportunities by boosting economic sectors that create stable jobs and usually higher incomes, thus improving livelihoods.
sources: e c . e u r o p a . e u / t r a d e
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