The role of international trade barriers
International trade as an engine for growth
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International trade can help countries to achieve growth and development, but there are some factors that oftne prevents developing country to grow & develop from international trade.
Problem of overspecialisation
Most developing countries tend to specialize in producing specific goods and services (specifically, primary goods) , here are the possible probelm that specialization can cause.
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Dependence on commodity export
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Missing out the benefits of diversification and expansion into higher-value-added production, such as engaging in more varied production activities, creating more employment opportunities, establishing new firms, expanding into activities requiring higher skills and technology levels
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Hardship to make transformation and industry ,limit the growth and development of the country
Price volatility of primary products
For what we learned in the PED section, we know that primary goods are more price volatile. Therefore, the price of primary goods that the country is specializing in producing can change price frequently due to reasons. This will result in a fluctuating export revenue, which will effect the country's balance of payment and ability to import negatively.
Trade barriers / Inability to access international market
Most of the countries have trade barriers to limit the size of their annual import. Poor developing countries have less ability to bear with the cost of import (either tariff / opportunity cost) in relative to rich countries. This limits the size of export for developing countries, which is in both short and long term bad for their economy and economic development.