Conflict Theory

             Conflict theory seems perhaps better suited to explain the
             contradictions in world trade and, even more profound, the differences that
             normally appear between developed and developing countries, especially in
             World Trade Organizations Ministerial Conferences, but also in general
             The tools and general trends that world trade operates with are
             liberalization and protectionism (protective measures). High import taxes
             and subsidies are among the most common protective measures and these have
             the role of protecting national producers against lower priced, more
             competitive products that may enter the country and may force the national
             The industrialized countries generally aim at imposing global lower
             import taxes on manufactured goods. This would ensure them better export
             capabilities to third world countries, given the fact that manufactured
             goods from developed countries are generally more competitive, because of
             higher prices. So, the only chance for national manufactured goods from
             third world countries would be a price advantage over Western goods.
             However, the price advantage is driven by the price level at which
             these goods are sold. The lower the import taxes, the lower the price that
             Western goods will be commercialized at and, as such, the lower the price
             advantage for manufactured goods n developing countries.
             The agricultural products are somewhat in a different situation.
             Many developing countries produce much cheaper goods, but this would tend
             to suffocate national producers in United States and the European Union,
             for example, because they would not be able to compete with cheaper grains,
             fruits, etc. As such, developed countries use either import taxes or
             export subsidies that will allow for lower price for the producers at which
             they will sell and will thus protect national farmers by ensuring they stay
             in business. Over these two d...

More Essays:

APA     MLA     Chicago
Conflict Theory. (1969, December 31). In MegaEssays.com. Retrieved 00:04, September 20, 2024, from https://www.megaessays.com/viewpaper/201827.html