Aid For Trade - Coursework Example

Aid for trade is beneficial for developing countries but disadvantageous for firms in the developed world. Developing countries lack resources and giving them aid for trade would provide them with the resources to carry out and promote their products more effectively. Moreover, it has often been observed that there is a lot of talent found within developing countries that are undiscovered due to financial and other resource-based constraints, therefore proving people of such countries with aid for trade would enable their talent to flourish and help them lead a good lifestyle.

It has also been observed that traditional work has a lot of demand across the globe, and generally, such work is carried out in villages in developing countries. Providing aid to such developing countries could enable this work to get across borders and provide a healthy inflow of cash across borders, thereby helping the trade position of the exporting developing country, alongside providing cash to cash-strapped producers often located in villages.

While trade is beneficial for developing as well as developed countries alike, developed countries generally have substantial resources and do not need aid for trade. Giving them further aid only adds to their pile of wealth and pressurizes them to perform even when they do not can too. Rather than providing aid for trade to developed countries, such nations need to focus on new inventions, which can then be traded across the globe.

Finally, aid for trade is unhealthy for developed nations from an economic point of view as well as it causes productive and allocative inefficiencies within their economy and leads to a waste of resources that could be put to use much better elsewhere.