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In: Economics

Less developed countries (LDCs) sometimes argue that industrialized nations' tariff structures discourage the LDCs from undergoing...

Less developed countries (LDCs) sometimes argue that industrialized nations' tariff structures discourage the LDCs from undergoing industrialization. Discuss the validity of this argument.

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Expert Solution

it is generally believed that development of developing country sometimes could not take place beacause of developed country's economic behaviour in international market. if we look closer toward developed country we will find some kind of protectionism in their policies.they called developed that clearly means that their market is largely influsing,country uses trade tariffes to protect their goods and other stuffs ,trade policies are put in place in order to regulate import and exports trade. Notably, the primary aim of the policies is to protect domestic products from foreign competition by doing this they discourage the development of less develop country. LDC do not possess large goods or services , they can not compete in international market with economic giants like USA ,CHINA etc but we know that because of globlisation every market is connected with each other so when LDC import something it will cost more then they can bear, and same happens when they export , they do not find market to export because of so much competition ,because of industrilisation country like USA CHINA have became a regulater of price. so LDC are in the edge and developed country are in the centre.
we can understand this by dependency theory and world system theory of immanuel wallerstein. in this theory it is argued that developed country alwayes exploit the less developed countries it is bacause of less developed countries have less resources, less education, higher man power, raw meterial they do not industrilised and all of these reason are enough to keep them less develop. In dependency theory is it believed that the reason of underdevelopment of these countries lies within themselves but in modernization theory the say that it is because of the structure of the international system which made them less developed countries and they argues that, for the development of these underdevelop countries it would be better to trade with countries like them not big economic giant because they will never let these country industrilised or developed.

so here we can conclude that , because less developed countries lack of resources and they are dependent on developed countries for goods and other resources, so developed countries regulate world economic according to themselves and they increase their tariffes so they can protect their products and stop other countries comming in their country, these increased tariffes, somehow it put negative impact on less developed countries and they do not have any choise but to accept the condition.so because all of these reason industrilisation or development in less developed countries could not take place or have very slow development


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