4 ms·

I'll try to provide an answer as far as I understand the issue. Poorer countries with less developed markets are forced to open their domestic markets to forei

I'll try to provide an answer as far as I understand the issue. Poorer countries with less developed markets are forced to open their domestic markets to foreign countries and competitors who then completely outcompete and dominate the local offerings. This prevents local business from developing and many existing ones go bankrupt in the face of foreign competition. This tends to leave the local market largely undeveloped in terms of domestic companies, and results in money flowing out of the country to foreign shareholders. Another problem is that so-called "free" trade isn't totally free. Some of the places that espouse free trade, like the US and Europe, don't practice what they preach. The most egregious example I can think of is agriculture subsidies, which effectively prevent (for example) African farmers from selling their produce in those markets while additionally making produce (like poultry) from those countries cheaper than local offerings, which again bankrupts locals.

ekianjo 9y ago
> Poorer countries with less developed markets are forced to open their domestic markets to foreign countries and competitors who then completely outcompete and dominate the local offerings Poorer countries which can't sell their agricultural goods on the global market don't fare too well. It goes both ways. Check the level of life in Cuba for example.
- owebmaster 9y ago
  > Poorer countries which can't sell their agricultural goods on the global market don't fare too well. It goes both ways. Check the level of life in Cuba for example. Which proves free trade is a shit of a system for most developing countries.
  - ekianjo 9y ago
    If they can't sell, it's not Free Trade.
    - owebmaster 9y ago
      In Free Trade is mandatory that every body is able to sell? Because if it is, it is not that free. I think your concept is wrong.
- bjl 9y ago
  Cuba's not really the best example. The highest literacy rates on the planet, some of the best doctors in the world, and zero homelessness, all while being embargoed by the largest economy in existence. Not really that shabby all things considered.
jdmichal 9y ago
Can we just call this the WalMart effect? I think most people are familiar with this idea in the context of big, bad WalMart coming into town and all the local mom and pops die off. It's basically that, but at an international scale.
ThomPete 9y ago
It's not free trade thats the issue though, it's trade barriers and subsidies which allow european and and americans to sell their products cheaper on local markets than ex the africans themselves. It's the opposite of free trade. I don't believe in a 100% free market but I do believe that giving developing countries access to our economy is good for them (look at large parts of asia) and is better than less free trade.

ekianjo 9y ago

> Poorer countries with less developed markets are forced to open their domestic markets to foreign countries and competitors who then completely outcompete and dominate the local offerings Poorer countries which can't sell their agricultural goods on the global market don't fare too well. It goes both ways. Check the level of life in Cuba for example.

owebmaster 9y ago
> Poorer countries which can't sell their agricultural goods on the global market don't fare too well. It goes both ways. Check the level of life in Cuba for example. Which proves free trade is a shit of a system for most developing countries.
- ekianjo 9y ago
  If they can't sell, it's not Free Trade.
  - owebmaster 9y ago
    In Free Trade is mandatory that every body is able to sell? Because if it is, it is not that free. I think your concept is wrong.
bjl 9y ago
Cuba's not really the best example. The highest literacy rates on the planet, some of the best doctors in the world, and zero homelessness, all while being embargoed by the largest economy in existence. Not really that shabby all things considered.

jdmichal 9y ago

Can we just call this the WalMart effect? I think most people are familiar with this idea in the context of big, bad WalMart coming into town and all the local mom and pops die off. It's basically that, but at an international scale.

ThomPete 9y ago

It's not free trade thats the issue though, it's trade barriers and subsidies which allow european and and americans to sell their products cheaper on local markets than ex the africans themselves. It's the opposite of free trade. I don't believe in a 100% free market but I do believe that giving developing countries access to our economy is good for them (look at large parts of asia) and is better than less free trade.