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

Developed countries want developing countries to liberalise their trade as well as investment because then the MNCs of the developed countries can set up their factories in less-expensive developing countries, and then increase their profits, lowering the manufacturing costs and the same sale price. If the Indian government imposes a tax on imported goods, then the price of the goods will be higher for the consumer. As a result, the consumer will choose buying the goods produced in the local market. Subsequently, there will be no demand for the goods that are imported and developed countries will not able to sell their goods in developing countries.
In return for liberalisation of trade laws, the producers of the developing countries are asking for a ‘fair trade’. The developing countries should demand for some type of protection of domestic producers from competition created by imported goods. Moreover, charges should be levied on MNCs looking to set up base in developing nations. MNC’s setting up their bases in developing countries should also be forced to work for the development of the country.

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