L10 Trade Reform (1)

L10 Trade Reform (1) - TheLiberalizationofTrade...

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    The Liberalization of Trade  and Export Promotion
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    Introduction By the mid-1980s, countries in Latin America, struggling through the debt crisis, began to recognize that outward oriented Asian countries dealt better with the debt crisis. Chile and Mexico had some early success with trade reform. And out of necessity they had to find ways to export more and make debt payments
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    Chronology of Trade Reform, 1985- 95 So one by one at first, countries in Latin America liberalized their trade regimes.
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    Objective of Trade Reform –  To make trade an engine of growth by:  1) exploiting comparative advantage 2) lower consumer prices 3) reduce rent-seeking activity 4) take advantage of the much larger world market 5) openness facilitates technology transfer
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    Elements of trade reform Reduction of the average tariff level Reduction of tariff dispersion
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    Elements of trade reform (cont) Reduction in non-tariff barriers – quotas & prohibitions Exchange rate policy – devaluation Export promotion programs
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    Exports increased More in some countries than in others
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    But exports increased more in the world overall than they did on average in Latin America
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This note was uploaded on 01/24/2011 for the course ECON 361 taught by Professor Meyer during the Fall '10 term at George Mason.

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L10 Trade Reform (1) - TheLiberalizationofTrade...

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