International business (Discussion Board) - Assignment Example

International Business (Discussion Board) The answer is: Based on the information provided, I agree that both Rivoli and Lamy are correct. The reasons to this agreement are; Rivoli knows that many of these developing countries are in the African continent. This implies that their economic growth is based on Agricultural production. These countries produce agricultural products mainly for export. Free trade helps enhance growth in these countries, it is said that trade agreements would help annual GDP of developing countries increase from $80 billion to $250 billion (Akyüz).

This is good to help the nations grow and reach their full potential. According to Lamy, it is also important that the free trade agreements allow the developing countries to import what they are not good ad producing on their own. Allowing countries to trade at what they are not good at will effectively help the development of the countries. These countries can trade what they have for what they do not have, this means carrying out some kind of barter trade. ResponseCurrently, the revenue these developing countries earn is spent on developing infrastructure such as roads and electricity production.

They also offer their citizens social amenities such as educational and medical services. If they are allowed to trade for what they do not have, it will ease the burden on the governments’ shoulder. The governments would essentially trade for goods such as automated machineries for different production industries such as car manufacturing industries. The result will be further increase in their GDP and less dependence on foreign aid.Works citedAkyüz, Yilmaz. Developing Countries and World Trade: Performance and Prospects.

London: Zed Books Ltd, 2003.