Be harmful to them?

Question

Textiles and apparel belong to an industry that many countries tend to protect.

Underdeveloped countries, especially in Asia, are hoping to expand their infant textile

industries and achieve development and economic growth.

Why would lowered trade barriers on textiles around the world be helpful to these

countries? How might lowered trade barriers be harmful to them?

Answer 1

u know taxes and tarriffs often turn out to be 2 way, bsides the us. is a major with natural resourses and as a producer of sophisticated finoshed goods, may be these are a part of a greater golden handshake in which all countries remove mutual barrier for free-eer trade and uplift consumers and efficiency, while us gives them a better bargain to supply under it's control

the issue is if the small sacrifice, of course subsidy can b given benifits us more which resorts to unfair practice or benifits promised are not that ripe then the poor loose, once a part of treaty harder to break it for fear of concessions. u dont know how international relations are harmful

but end , as most economists feel some trade of strategic consequence --lik agro based or pharmaceticuals should be cautiosly handled in international trade and not outright liberalized!

Answer 2

A government imposes trade barries to protect domestic industries, often infant industries.  Take the united states for example.  The U.S. placed barries to trade (i.e. quotas, duties, import taxes, etc.) on steel to protect the U.S. industry.  It helped the US steel by cutting out some foreign competition.  With less competition, the US has more price setting power and could make more money.  It also helped the US because it allowed US to hire more people.  With trade barries US consumers would buy US steel instead of paying taxes and extra for foreign steel.  This hurt consumers becasue they had to pay more for steel, an effect of less competition, which is caused by barriers to trade.  Now just apply this to the textiles and apparel industry in the global underdeveloped countries.  There are many pros and cons to Barriers to trade.  Lowered trade barriers would allow more competition between textile companies which could hurt infant industries domestically.  Just use the US steel example but take the opposite.  Hope this helps!