The Development of the Fast Growing Asian Economy

Trade is an important factor for the social and economic development of any country. From the initial barter system to the present days complex trading system trade has changed and developed along with the growth of human society. Several economic theories have been developed to explain the concept and complexity. The neo-classical theory explained that international trade could fulfill the gap of low domestic
among various sectors in response to individual profit maximization. Autarchy on the one-hand closes the local market for any trading practice outside the market like export and import whereas mercantilism opens trade for national advantage. Mercantilism Government can restrict imports and subsidize the export to protect the local industries. Professionalism, strategic trade, fair trade, and free trade are some other theories for the roles of Governments. Balance Trade is considerably safe options for the
Governments where they maintain equilibrium between the exports and imports. For sustainable development of any country, it is important to have an open economy. The open economy brings opportunity to grow. increases competitiveness that further leads to an increase in efficiency and effectiveness of the product and services offered and increases the employment opportunities.Trade Reforms have an impact on the following factors:
Cost: The cost of products and production gets influenced by trade reform policies.
Protection and promotion of Industries: Trade reform policies are the tool through which the Government protects and promotes any particular industry.
Growth and Poverty: The trade reforms have a direct impact on growth and poverty. Opening the sector or industry of country-specific opens growth avenues, new markets and provides employment opportunities. The economy results in the accumulation of human and physical capital and improves production and manufacturing that leads to the overall growth of the economy.