Assess the aspect of ‘trade liberalization’.

Trade liberalization is the process of importing and exporting goods from other countries without any barriers or minimum barriers. But because of this trade liberalization, there are both negative as well as positive aspects.

Positive aspects

• All the good quality products will be available at cheaper rates for the consumers.

• Transport and communication system develops very fast because of the trade and new technology can be adopted from the developed countries.

Negative aspects

• The infant industries in the domestic country will face severe competition and they will be wiped out from the market.

• The price of the commodities will go high if the domestic industries are wiped out of the market.