Trade Must Extend to Poorer Countries.

• Author: Belisle, J. Denis

Rapid globalization, new forms of business alliances and communications developments are reshaping the international trade landscape, and bring new business opportunities between developed and developing country firms.

J. Denis Belisle, ITC's Executive Director, and Michael R. Czinkota of Georgetown University's McDonough School of Business outline why we should respond to these trends, and indicate some of the steps ITC is taking to help developing countries benefit from the unprecedented new volume of international trade.

In the growing world economy, the North can no longer rely solely on trade led by Fortune 500 corporations. Trade must also increase in the South if all are to benefit from a growing world economy. Policy makers and businesses of all sizes must realize the strategic importance of the developing world, not just from the traditional sociopolitical perspective, but from the perspective of fostering an integrated global economic framework. It is in everyone's best interest to respond to global trends in ways that will foster growth in all countries; including the least developed ones.

Why? Simply put, trade between firms in developing and developed countries provides the margin for expanded opportunities for trade and investment. There is a mutuality of benefit in trade, an inextricable link that contributes to economic development in all countries. Companies that export to developing countries will expand into new markets, reaching consumers with increasing purchasing power. Companies importing from developed countries will gain access to high-quality, lower-cost products that improve their competitive edge.

Yet the question remains: How is it possible to help developing countries while letting market forces prevail? Based on extensive research into trends in international business conducted at Georgetown's McDonough School of Business and on practical experience gained at the International Trade Centre, this article identifies issues in international trade that will affect developing countries, outlines some initial steps taken by ITC to help businesses and countries benefit from these global changes, and presents an opportunity not to be missed.

The three most important dimensions are trends in globalization, new forms of partnership and the rapid development of information technology.

Globalization

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