Why do developed countries want developing countries to liberalize their trade and investment? What do you think should the developing countries demand in return?
Developed countries want developing countries to liberalize their trade and investment for following reasons:
● To make use of the untapped resource potential of developing countries.
● To ensure the utilization of the capital in some productive use which they have acquired over the period of economic development.
However in return developing countries can negotiate for following:
● Transfer of latest technology
● Least or zero environmental externalities.
● Adequate protection to vulnerable industries
● Humane treatment and condition of labourers.