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This Was To Deal With Unemployment. However, It Is Thought That This Did Not ...

This was to deal with unemployment. However, it is thought that this did not work either, as many people still went unemployed. This point has open to much debate in the past. However, now, in contrast to the imposing of quotas on countries like China (that is capable of mass production), it is interesting to research the advantages of trade between UK and developing countries such as India and China. In view of trade agreements signed, it is interesting to learn about the trade advantages between UK and China or UK and India in comparison to trade relations between regions, such as the EU and China.
Rationale:
In order to understand the advantages of the UK trading with countries like the India and China, there is need to understand the track record of each of these Third World Countries. The UK needs to determine from this history whether trading with them would be viable enough, and it also needs to know whether there are particular risks involved. In order to review the trade relationships that each of these countries, in particular China, their past trade relationship with the European Union is of importance. The trade relationship between the European Union and India has apparently been a smooth one in contrast to the trade relationship between the European Union and China. While the EU affirmed positive gains for India when it was expanding, it appears that India fears of some of its industries suffering have been minimized. In fact, India has gained significantly since the expansion of the EU. China's trade relationship, in spite of its large-scale progress in commodity trade, has had obstacles along the way. The most recent of these is the controversial quotas recently applied to its textile exports to the EU and the US. In view of the reasons for which the EU and the US have imposed these quotas, the UK should be cautious about further developing its trade relationship with China. The advantages that the UK can have by trading with developing countries like China and India need to be determined through understanding their trade relationships and also understanding their ‘Advantages'. While China has an Absolute Advantage over the UK in many commodities, India is said to have a Comparative Advantage over the UK. In view of the advantages that these two developing countries have, it is thought that it would be more advantageous for the UK to trade with India. Not only would the UK's trade relationship with India be safer, it would also be more advantageous.
Research Question:
In view of the historical context and the capability that countries like China and India have, it is important to understand the prospects of a trade relationship between these countries and the UK. For this study, the main research question is:
What are the advantages of trade between UK and developing countries such as India and China?


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