Trade barriers have had various negative impacts on East Asian economies. Some of these include:
1. Dependency on imports: Trade barriers limit the ability of East Asian countries to access global markets. As a result, they become highly dependent on imports for goods and services that could otherwise be produced domestically. This can lead to a trade deficit and drain the country's foreign reserves.
2. Limited growth by bearing specialization: Trade barriers hinder the ability of East Asian economies to specialize in the production of goods and services that they have a comparative advantage in. This limits their potential for economic growth as they are unable to fully exploit their strengths and compete in global markets.
3. Discouragement of education and training: Trade barriers often result in higher costs for imported educational materials and technologies. This can discourage investments in education and training as it becomes more expensive to access the necessary resources. As a result, the workforce may lack the necessary skills and knowledge required to compete globally.
4. Limitation of government investments: Trade barriers restrict the ability of governments to invest in key industries and sectors. Limited access to foreign markets reduces the incentive for governments to invest in sectors that have export potential. This can hamper industrial development and hinder economic diversification.
5. Impact on industry and farming: Trade barriers can negatively affect the competitiveness of domestic industries and agriculture. Protectionist measures such as tariffs and quotas make imported goods more expensive, allowing inefficient domestic producers to survive. This can lead to a lack of competition, lower product quality, and reduced productivity in domestic industries and farming.
Overall, trade barriers hinder economic growth, discourage investments and specialization, and limit the competitiveness of East Asian economies. Removing or reducing these barriers can help unlock their true potential and promote economic development.
How have trade barriers harmed east asian economies?
They have many countries dependent on imports
They have limited growth by bearing specialization
They have discouraged, education and training of the workforce
They limit government investments, and industry and farming
EAST ASIA PRACTICE
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