ADVANTAGES

The discussion in the prior section noted that most of the gains from trade thatdeveloping countries are projected to receive result from their ownliberalization, not the removal of trade barriers by the industrializedcountries. Yet, developing countries (like industrialized countries) aregenerally reluctant to engage in unilateral trade liberalization. Thisreluctance would appear to be foolish—even if the gains from tradeliberalization are relatively modest, countries should still prefer policiesthat will make them better off. However, there are good reasons that developingcountries may opt not to follow an ambitious route of trade liberalization, evenif the positive gains predicted in the models proved accurate.

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