PROBLEMS OF INTERNATIONAL TRADE ON THE ECONOMY OF THIRD WORLD

Primary export; most of the developing countries in its initial stage of development are exporting mostly primary products and this cannot fetch a good price of its product in the foreign markets, in the absence of diversification of its exports, the developing countries have failed to raise its export earnings

Unfavorable terms of trade; another problem faced by these developing countries is that the term of trade are always going against it, in the absence of proper infrastructure and the quality enhancement initiative, the terms of trades of these countries gradually worsened and ultimately went against the interest of the countries in general.

Mounting developmental and maintenance imports; the developing countries are facing the problems of mounting growth of its developmental imports which include various types of machineries and equipment for the development of various types of industries as well a huge growth of maintenance imports for collecting intermediate goods and raw materials required for these industries.

Higher imports intensity; another peculiar problem faced by the developing countries is the higher import intensity in the industrial development from import intensive industrialization process followed in these countries for meeting the requirement of elitist consumption.

 Depleting foreign exchange reserve and import cover; the developing countries are sometimes facing the problem of depleting foreign reserves as a result of growing volume of import and continuous balance of payment crises.