Trade Issues Between Developed and Developing Nations

Trade Problems 1 Trade Issues between highly-developed and Developing Nations Friday, January 22, 2010 Trade Problems 2 There are trade problems that survive for a less developed nation when employment with a more than developed nation. These trade problems can prevent the less developed nations from maximising possible gains from international trade. Some of these problems are temporary and resolved in time, while separates are more stubborn and unable to be resolved.I will discuss the type of issues developing nations come across when trading with developed nations. Developing countries participating in trade lack an organised and strong mvirtuosotary policy. Developing nations have problems forecasting money demand. substitution banks have problems keeping records for managing monetary policy because the banks are not sovereign of the government. Some developing countries adopt policies such as dollarization, which allows for financial constancy and lower inflation.Invent ory problems in developing nations are another issue. In developing countries, inventory may be agricultural products instead of industrial products. Most of the inventory problems have to do with the food security and nutrition of the people. Developing nations have to stabilize food prices and production. They also have to equalizer the domestic and imported supply of agricultural products. In Mexico, pollution has change magnitude since NAFTA was signed into law and trade between the U. S. and Mexico began.Despite its governments initial care to Trade Problems 3 environmental issues associated with economic growth, the government did not maintain through on its intentions to take care of the environment. In 1994, real spend on environmental protectiondeclined 45% (Gallagher, 2004). Further, inspections fell by 45% over the same period (Gallagher, 2004). Ten years later, in 2004, in that respect is nothing to suggest that pollution has decreased. If Mexico does not act on pr otect its environment, further environmental degradation will continue.With Mexicos comparative prefer of an abundance of unskilled labor, most firms will stay near(a) to their production markets and pay the costs of environmental regulation, which are small, compared to relocating their businesses elsewhere (Gallagher, 2004). sagacious implementing regulations and enforcing them will not jeopardize direct foreign investment is one of the most important reasons why Mexico can and should reduce pollution and other environmental degradation within its borders (Gallagher, 2004). Trade Problems 4 ReferencesBigman, D, (1986, February). The Journal of the working(a) Research Society, Research on Inventory Problems in Developing Countries. Retrieved Friday, January 22, 2010 from http//www. jstor. org/pss/2582717 Gallagher, K (2004, September). Free Trade and the Environment Mexico, NAFTA, and Beyond. Retrieved Friday, January 22, 2010 from http//ase. tufts. edu/gdae/Pubs/rp/NAFTAEnviro KGAmerProgSep04. pdf Wikipedia, (2010, January). Monetary Policy, Developing Countries. Retrieved Friday, January 22, 2010 from http//en. wikipedia. org/wiki/Monetary_policy