12/10/2023 0 Comments Trade blocs help countries by quizlet![]() Nevertheless, a challenge will be to combine sustainability standards with more and open trade. This will lead to more sustainable supply chains and diversification away from carbon-intensive sectors. As countries adopt policies to meet their global carbon commitments, their trading partners can develop areas of “carbon competitiveness” through reduced carbon intensity of production and seize new opportunities in green growth. Yet with the right policies, trade can play a central part in efforts to adapt to climate change and mitigate its impact: It can foster the spread of Environmental Goods and Services such as solar panels and recycling to help reduce emissions and improve biodiversity, and it can facilitate the transfer of climate-friendly technologies. The damage wrought by climate change highlights the urgent need for adjustments in trade: The extraction and processing of natural resources account for more than 90 percent of biodiversity loss and water stress and half of greenhouse-gas emissions. Promoting international trade and advancing sustainable economic development are not mutually exclusive and can be mutually reinforcing. Clear international rules for digital commerce will also be needed negotiating them will require coordination and expertise from policymakers and a strong domestic digital sector that can identify challenges and potential solutions. Advanced and developing countries alike will need help to smooth the transition from manufacturing to services with programs to promote skills development, labor mobility, and gender equality. But many developing countries lack the necessary technical, regulatory, financial, and educational infrastructure and are at risk of being left behind. Digital commerce allows firms of all sizes, anywhere in the world, to gain access to new markets. Disruptions to global food and fertilizer markets caused by the war in Ukraine and sanctions on Russia jeopardized food security in developing countries.ĭigitalization, and the related shift to services, promises to reshape trade and presents important opportunities for developing countries. Disruptions to global supply chains and rising shipping costs caused by the COVID-19 pandemic have also put the economic recovery at risk, adding to calls for reshoring production of vital goods, especially medical products and semiconductors. Powerful protectionist forces have begun to challenge the global community’s commitment to open trade many in advanced economies blame trade for job losses as manufacturing and some services shift to lower-cost destinations. Most global poverty reduction has been concentrated in Asian countries, principally in China, while other regions continue to experience high inequality and poverty. Still, we must recognize that not everyone is experiencing the benefits of globalization. The WB helps its client countries overcome these obstacles and more fully reap the benefits of global markets. Many of the world’s poorest people live in places that are landlocked, remote, or otherwise ill-served by international trade links. Even a country with liberal and transparent trade policy suffers if its markets are not connected. In developing countries, access to global markets is often hindered by anti-competitive business practices, regulation that is unfavorable to business growth and investment, and inadequate ports, roads and other infrastructure. Fostering cooperation through trade and business is also pivotal in helping countries escape conflict. ![]() Exporters in developing countries employ more women than non-exporters, and women comprise up to 90 percent of the workforce in export-processing zones. Trade is also linked to higher female participation in the formal labor market, where wages are higher. Economic growth underpinned by better trade practices has lifted more than 1 billion people out of poverty since 1990. Since 1990, trade has increased incomes by 24 percent globally and by 50 percent for the poorest 40 percent of the population. Recent research shows that trade liberalization increases economic growth by an average of 1.0 to 1.5 percentage points, resulting in 10 to 20 percent higher income after a decade. Trade is an engine of growth that creates better jobs, reduces poverty, and increases economic opportunity. The World Bank (WB) helps developing countries improve their access to world markets and enhance their participation in the global trading system.
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