Why do developed countries want developing countries to liberalise their trade and investment?

Question.

Why do developed countries want developing countries to liberalise their trade and investment? What do you think should the developing countries demand in return?


Solution:

Developed countries want developing countries to liberalise their trade and investment because then the MNCs belonging to the developed countries can set up factories in less-expensive developing nations, and thereby increase profits, with lower manufacturing costs and the same sale price. In my opinion, the developing countries should demand, in return, for some manner of protection of domestic producers against competition from imports. Also, charges should be levied on MNCs looking to set base in developing nations.

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