Trade Liberalisation And Issues For Multinational Corporations

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The outcomes of free trade are desirable for the developing countries in terms of rapid industrialisation and for the multinational corporations in the context of cheap labour and profit opportunities in the new market
This report provides an insightful study on the issues encompassing multinational corporations underlying trade liberalisation between developed and underdeveloped countries in the world.


Trade liberalisation, as the term indicates, is about liberalising or freeing the trade from national restrictions and boundaries. In the modern world spectrum, this term is mostly taken to reflect the system of global free trading, where international trade is allowed freely without any restrictions such as tariffs and trade bans. As Javier (2005, pS05) rightly delineate the term trade liberalisation as "the international trade of goods or services without tariffs or other trade barriers; the free movement of labour and capital between countries; and the absence of trade-distorting policies, such as taxes, subsidies, regulations, or laws, that give domestic firms or goods an advantage over foreign ones".
It suggests that the trade liberalisation implies trading activities on a national or international scale, where goods can be imported or exported without restrictions or tariffs and quotas, people (skilled and unskilled) are allowed to move freely nationally or internationally, and removal of any laws on the part of the government that are likely to hinder the trade. Shah (2006) refers to trade liberalisation as a system making it convenient to trade within as well as outside the nation owing to the self-concern of individuals.
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