Problem
Inadequate adjustment assistance to industries and labour affected by export competition
Nature:
In the developed countries, adjustment assistance leading to trade liberalization would involve the re-allocation of production factors from less efficient into more efficient domestic industries. Temporary deterioration in the developed country's balance of payments following trade liberalization might be expected, since, even with very efficient adjustment assistance programmes, the immediate increase in imports following trade liberalization would normally occur before personnel had been fully retrained and re-allocated into more efficient export-oriented industries. Re-allocation might be expected to cause psychological and social hardships for the affected workers, as well as possible loss of income and other employment rights. The scrapping of not fully depreciated capital equipment would involve costs for the affected firms.
Broader Problems:
Undeveloped business supportRestricted growth in export marketsImport competition from low-wage countriesInadequate trade-related structural adjustments Aggravates:
Depressed industriesLoss of internal political bordersTrade barriers against developing countries Subject(s):
Commerce → Conditions of tradeCommerce → Import, export
Development → Assistance
Industry → Industry
Social Activity → Work
Societal Problems → Inadequacy
Related UN Sustainable Development Goals:
Problem Type:
E: Emanations of other problems Date of last update
04.10.2020 – 22:48 CEST