Friday, July 26, 2013

Is It?

After watching a video clip on pearson.com, I started to wander if the so-called “foreign aid” is really doing what it supposed to do. The clip is called The Trade Trap, which addresses the trading market between Ghana and other foreign countries. Being one of the poorest countries, Ghana keeps receiving foreign aids. Yet, those “aids” didn't help any of the local industries at all. Local products are not able to compete with foreign imports. Even if there are international trading opportunities for made-in-Ghana products, there are other trading barriers. For example, the high tariff would make the Ghana exports unable to survive from the local low price. Another trading barrier is import restriction. Sometimes foreign countries would lay some limits for import. For instance, if Ghana wants to export bananas to Europe, Europe might set certain restriction on the weight, the color, the length…etc. of the bananas. Even if the bananas have a great quality but only ugly outside, they cannot be imported.

People said free trade is good, but, really, is it?

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