INTERNATIONAL TRADE LAW AND ECONOMIC DEVELOPMENT.

INTERNATIONAL TRADE LAW & ECONOMIC DEVELOPMENT.



INTERNATIONAL TRADE LAW & ECONOMIC DEVELOPMENT.

Introduction

Since remote times, governments around the world have shown interest in many aspects being one of the most important the economy of their nations. Nowadays, the global economy is in crisis, consuming the attention of people around the world. Since the US to China, countries around he world are struggling due to the constant negatives changes that world's economy is facing. Instability has appeared in all sectors of economy, from housing and real state to bank and financial markets, until reaching all parts of worlds economy. The financial crisis that started in the United States in the real state market has expanded all over the world, producing fear inside the European Union, and some of the principal markets in Asia, such as Japan and China. According to the professor of Economics at Columbia University, Joseph E. Stiglitz the financial crisis that nowadays we are affronting can be considered as the worst of the global economy since World II.(Hansen,1995) The preoccupation that all nations around the world have shown during the last couple of years can increase dramatically if governments around the world do not take more active actions. Many economists believe that this crisis can easily grow from a recession to a depression; while other economist believe that we already are into a depression that can be like or worst that the Great Depression in the 1930's. An economic recession is recognized when the GDP of a country falls for two consecutive quarters, while a depression occurs when the GDP falls for more than four consecutive quarters (1 year). This statement infers and emphasizes Stiglitz words about the real problem that we are facing and the long period of time to recover the economy that it is going to take. However, not only developed countries have been affected by the global crisis. In his work, the Impact of the Financial Crisis on Developing Countries, Justin Yifu Lin, senior Vice President and Chief Economist of the World Bank, states that even though the effects of this crisis in the developed countries has reduced their standard of life and produce the lose of many jobs, it is in developing countries where the financial aid must be focus. In countries like United States, Japan and Korea, just for mention some, the financial crisis has produce many factories to close and significantly reduce the acquisitive power of its people. But in the developing world this crisis has not only stop the economic progress of recent years; it has produced many people to lose their lives. Therefore, the focus of this paper is the impact of the financial crisis on developing countries, and what can be done to help them, taking in consideration that even though some of them have good fiscal policies they are not exempt of the global crisis.

Part (a)

The developing world has been showing an incremental in their economical activities during recent years; however it has been ...