Giving poor countries the opportunity to participate in the global economy through trade helps grow their economies, creates jobs, and reduces poverty. The example of South Korea can give us the justification for the reason why. South Korea was counted as one of the poorest countries in the world. The annual per capita income was $64 only just after the Korean War. Today, the per capita income is over $23,000 and in just 50 years South Korean became a country richer than both Spain and New Zealand. Over the last 50 years, South Korea has achieved an average growth rate of 7%. The key tool elements were trade and export-oriented growth.
IMPORTANCE OF TRADE
Trade capacity building has the capacity to involve developing countries in order to share technical knowledge on policy development, building functioning, and efficient institutions. This can help poor countries to harmonize standards, reduce barriers to entry, and creating an attractive investment climate to attract foreign businesses.
Developing countries are mostly the exporters of the raw material for the production of goods. Through the export of raw material, poor countries can increase their foreign reserves which are a great contribution to the overall development. Additionally, through trade relations rich countries can offer job opportunities for the people of poor countries. For the world nations, trade is beneficial for everyone because it increases the number of choices in the market.