Aid for trade is beneficial for developing countries but Coursework

Aid for trade is beneficial for developing countries but disadvantageous for firms in the developed world - Coursework Example It has also been observed that traditional work has a lot of demand across the globe, and generally such work is carried out in villages of developing countries. Providing aid to such developing countries could enable this work get across borders and provide healthy inflow of cash across borders, thereby helping the trade position of the exporting developing country, alongside providing cash to cash stripped producers often located in villages. While trade is beneficial for developing as well as developed countries alike, developed countries generally have substantial resources and they do not really need aid for trade. Giving them further aid only adds onto their pile of wealth and pressurizes them to perform even when they do not have the ability to do so. Rather than providing aid for trade to developed countries, such nations need to focus on new inventions, which can then be traded across the globe. Finally, aid for trade is unhealthy for developed nations from an economic point of view as well as it causes productive and allocative inefficiencies within their economy, and clearly leads to waste of resources that could be put to use much better