Effects of Trade Liberalization

Trade liberalization plays an important role and has become an important driving force in the process of economic globalization. This article attempts to apply trade theory to a general analysis of the effects of trade liberalization, including those on resource allocation, economic growth, industrial structure, trade structure, employment and welfare. Having made a concrete analysis of the negative effects of trade liberalization upon developing countries, the article points out that in the process of trade liberalization and economic globalization developing countries should seek gains and avoid losses as well as develop their trade and economy by following the principle of comparative advantages so that they may enjoy to the fullest degree the advantages and benefits brought by trade liberalization and economic globalization.