International trade conditions: challenges for less developed countries

Authors

  • Giovanni Reyes Universidad del Rosario

Keywords:

international economics, international trade, economies of less developed countries

Abstract

Main issues this paper takes into consideration are related to: (i) conceptual topics or theoretical aspects from mainstream international trade frameworks; and (ii) core concerns, less developed countries need to face to pursue higher standards both, in their efforts to improve internal markets and participation into foreign links regarding international trade scenarios. From the theoretical standpoint, major features of the current globalization processes are discussed. One of the key final considerations regards the evidence that under the new mechanisms of the World Trade Organization, less developed nations have better conditions to carry out trade negotiations, notwithstanding, broad margin for improvement exists to achieve fair circumstances in the foreign trade relationships.

Downloads

Download data is not yet available.

Author Biography

Giovanni Reyes, Universidad del Rosario

This study is a product of research projects which were carry out by the author of this paper. The subscriber of this document is entirely responsible for the contents of this paper; thereby it does not necessarily represent the standpoint of the Catholic University of Colombia or any other organization.

Ph.D. Economics of Development and International Relations from the University of Pittsburgh, with graduated certificates from the University of Pennsylvania and Harvard. He has been Fulbright and World Bank Scholar. Dr. Reyes has been Director of the Latin-American Economic System; he has worked for the United Nations Organization at UNICEF, United Nations Development Program (PNUD) the International Coffee Organization (ICO) at its headquarters in London, and the Vienna International Center in Austria. He has been Director of the Human Development Report Program in Venezuela; and twice, Dean of the School of Economics at the Catholic University of Colombia; currently Dr. Reyes is Associate Professor at the University Colegio Mayor de Nuestra Señora del Rosario. All rights reserved © Giovanni E. Reyes 2010; todos los derechos reservados © Giovanni E. Reyes, 2010.

TODARO, Michael (2005) p. 282.

MALLOCH, Thomas (2007).

SEE TODARO, Ob. cit, pp. 384-385

EATWELL, James, et. al. (2009) p. 346

That theorem is also called the theory of pessimistic terms of trade. It claims that over time, terms of trade for developing nations will decline. This situation would result in a transfer of income and wealth from less developed countries to more developed nations. This thesis was a useful tool to hold up public policies recommendation in terms of protecting less developed countries´ manufacturing exports in order to raise wages and prevent the overexpansion of the primary export sector. See the two classical articles in which this theory was founded: (i) PREBISCH, Raúl (1950) and (ii) SINGER, Hans (1950). See also HIRSCHMAN, Albert (1985) particularly Section III: Strategy for Economics of Development –inequity in distribution of wealth, economics of development and basic goods and authoritarian regimes in less developed countries; also, BECKER, Gary (2005); HIRSCHMAN, Albert (1998) and MYRDAL, Gunnar (1985).

Ibíd, p. 347.

OJIMI, V. (1979).

BRAILOVSKY, V. (1998).

EATWELL, J. Ob. cit, pp. 347-348

. SEE MOCHÓN Francisco (2007) pp. 46-53.

JOHNSON, Harold (2004).

See United Nations Organization (1992) p. 54.

Some of the basic concepts concerning operations with the International Monetary Fund -IMFare useful to keep in mind in studying the economic adjustment plans carried out in developing nations. A country’s subscription is the amount of money it pays into the International Monetary Fund when it joins the organization. Based on its subscription, a country is granted a quota which defines how much money it can borrow from the IMF. The General Arrangement to Borrow is a line of credit provided to the IMF by its major members. The Gold Tranche is the proportion of a member’s line of credit at the IMF that can be automatically borrowed. It equals 25 percent of the country’s subscription to the IMF. The remaining portions of a country’s line of credit, called credit tranches, are more difficult to obtain. Normally, if a country wants to borrow more than 50 percent of its drawing rights, the letter of intent, describing the policies it plans to follow to overcome difficulties, will lead to its request for funds. SEE Walther Ted (1997) especially Chapters 4 and 7; also: MOSER, Carolina (2004), MUKUM, John, et.al. (2003), MYRDAL, Gunnar.(1969), OCAMPO, José (ed.) (2005).

DORNBUSCH, Rudy, et. al. (2009) p. 750

7. Trade and Development Report 1993, Ob. cit. p. 30.

SEE HELLINER, G. (2004). See also, ANTESANA, Oswaldo. Ob. cit. p. 78; PORTES, Alejandro (2007) PUIGNAU, Juan (2002), RASIAH, Rajah (2009) and RITTBERGER, V. (ed.) (1993).

. Human Development Report 1992, Ob. cit, p. 66.

Ibíd, p. 67

Ibíd.

A new economic world order has emerged reaching an advanced stage of globalization: just 450 multinational corporations in 2008 had sales greater than 1 billion US$. They were responsible for 20 percent of the total worldwide industrial value added. See Mortimore, M. (1993). See also: Day, Richard (2004), Diesing, Paul. (2009), Echeverría, Rubén (2001).

See Economist, The (1993) December 18-24, 1993. (London: The Economist) p. 66.

See Kalmonovich, Salomon (2011) El Espectador, lunes 6 de junio, p. 28.

 

References

BECKER, Gary (2005) Teoría Económica (México, D.F., México: Fondo de Cultura Económica).

BRAILOVSKY, V. (1998) Industrialization and Oil in Mexico. (London: Academic Press).

DAY, Richard (2004) The Divergent Dynamics of Economic Growth. (Nueva York: Cambridge University Press).

DIESING, Paul (2009) How does Social Science Work? Reflections on Practice. (Pittsburgh, Pennsylvania: University of Pittsburgh Press).

DORNBUSCH, Rudy, et. al. (2009) Macroeconomics. (New York: McGraw-Hill).

EATWELL, James, et. al. (2009) The World of Economics. (New York: W.W. Norton) p. 346.

ECHEVERRÍA, Rubén (2001) Desarrollo de las Economías Rurales de América Latina. (Washington,D.C.: Banco Interamericano de Desarrollo).

HELLINER, G. (2004) Outward orientation, import instability and African economic growth: an empirical investigation in Theory and reality in development. (London: McMillan).

HIRSCHMAN, Albert (1985) De la Economía a la Política y Más Allá (México, D.F.: México: Fondo de Cultura Económica).

HIRSCHMAN, Albert (1998) La Estrategia del Desarrollo Económico (México, D.F., México: Fondo de Cultura Económica).

JOHNSON, Harold (2004) Trade Strategy for Rich and Poor Nations. (Toronto: University of Toronto Press).

KALMONOVICH, Salomon (2011) “La Institucionalidad Minera” en El Espectador, lunes 6 de junio, pág 28.

MALLOCH, Thomas (2007) Issues in International Trade and Development Policy. (Wesport: Greenwood Press).

MOCHON, Francisco (2007) Microeconomia. (Madrid: McGraw-Hill).

MORTIMORE, M. “A new international industrial order: increased international competition in a centric world”, in CEPAL (1993) Review, No. 48, August 1992, (Santiago de Chile, Chile: CEPAL).

MOSER, Carolina (2004) Encounters with Violence in Latin America: Urban Poor Perceptions. (Nueva York: Routledge).

MUKUM, John, et. al. (2003) Restarting and Sustaining Economic Growth and Development. (Burlington, Vermont: Ashgate)

MYRDAL, Gunnar (1985). Teoría Económica y Regiones Subdesarrolladas (México, D.F., México: Fondo de Cultura Económica).

MYRDAL, Gunnar (1969). Objectivity in Social Research. (Nueva York, USA: Phantheon Books). OCAMPO, José (ed.) (2005). Beyond Reforms: Structural Dynamics and Macroeconomic Vulnerability(Washington, D.C.: World Bank Publications, Latin American Development Forum).

OJIMI, V. (1979). Japan’s Industrialization Strategy (Paris: OECD).

PORTES, Alejandro (2007). Las Instituciones en el Desarrollo Latinoamericano (México, D.F.,México: Siglo XXI editores).

PREBISCH, Raúl (1950). The Economic Development of Latin America and its Principal Problems (New York: United Nations).

PUIGNAU, Juan (2002). Recursos Naturales y Sostenibilidad Agrícola. (San José, Costa Rica: IICA).

RASIAH, Rajah (2009). Uneven Paths of Development. (Northampton, Massachusetts: William Pratt House).

RITTBERGER, V. (ed.) (1993). Regime Theory and International Relations (Oxford: Clarendon Press).

SINGER, Hans (1950). “The Distribution of Gains Between Borrowing and Investing Countries” in American Economic Review 40, No. 2 (mayo 1050): 473-485.

TODARO, Michael (2005). Economic Development in the Third World. (New York: Longman).

UNITED NATIONS ORGANIZATION (1992). Human Development Report 1992 (Oxford: Oxford University Press).

UNITED NATIONS, UNDP (1993). Human Development Report 1993. (Oxford: Oxford University Press).

WALTHER, Ted (1997). The world economy. (New York: John Wiley & Sons Inc.).

Downloads

Published

2013-04-27

How to Cite

Reyes, G. (2013). International trade conditions: challenges for less developed countries. Tendencias, 13(1), 207–220. Retrieved from https://revistas.udenar.edu.co/index.php/rtend/article/view/522

Issue

Vol. 13 No. 1 (2012): Vol. XIII No .1 Primer Semestre Enero-Junio 2012

Section

Articles

License

Those authors who have publications with this journal, accept the following terms:

This journal is licensed under a Creative Commons Reconocimiento-NoComercial 4.0 Internacional License. The articles can be copied, distributed, adapted and communicated publicly, as long as the credits of the work are recognized and the respective source is quoted. This work can not be used for commercial purposes.

To increase their visibility, documents are sent to databases and indexing systems.

The content of the items is the responsibility of each author, and does not compromise in any way, journal or institution.


Most read articles by the same author(s)

1 2 > >>