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With this concern, the assignment intends to establish certain methods by which Chile has been able to perform unilateral trade liberations successfully to the full elimination of quantitative restrictions and exchange controls.
Trade liberalization of Chile could be classified under five stages of development process. Generally, unilateral trade liberalization technique involves the risk sharing mechanism. By deducting the interest of domestic political affairs, the unilateral trade relaxation may get blocked. The unilateral tariff cutback by a certain degree gets rid of this incompetence, but at certain situations, the factor concerning trade liberalization becomes more effective in the nation (Edwards and Lederman, 1998).
Trade liberalization is duly considered to be one of the significant topics from the preceding two decades as a form of economic policy for the developing countries. It is worth mentioning in this regard that public-private partnership has played a pivotal role in framing the emerging economy for Chile. The reduction of tariff towards the import of goods aided the private enterprises of the nation to grow extensively. In the past, executing free trade agreement has always been a subject of conflict for the agricultural sector. Agricultural product has been the issue of dynamic export arena accounting for fifteen percent of total exports. The main contrast appears from the traditional inward thoughts of the people (Saez, 2005).
The first stage ranged from the period of 1974-1978 and thus categorized by the reduction and the simplification of trade barriers. The second stage could be identified from 1978-1982, which reflected the picture of variation of its stabilization program. The third phase may be stated as the reversal stage that ranged from 1983-1985. It was the phase where Chile confronted severe ...Show more
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Motive behind trade liberalization is to eradicate the barriers for free exchange of goods amongst the nations. This may include removal of tariff or granting certain relaxation in the trade…
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