The Contemporary Trade Scenario

Abstract

The formulation of an effective macro-economic policy package is one of the key ingredients for self-sustained long-term growth, and international trade strategies are an integral part of it. Sagacious trade policies help increase economic welfare by achieving a better allocation of resources; therefore they have been a focal point of analysis for international trade economists and policy planners for the last three and a half decades. On numerous occasions trade economists have noted with concern that the policies adopted by planners in many less developed countries (LDes) have been widely at variance with those emanating from the models of optimal resource allocation. Some less developed countries, after pursuing a certain trade policy package, affected a significant reversal in the strategy, and were pleasantly surprised by the dramatic favourable results.