Yna Camille R.

Wenceslao

ECO121 / Fri / 12:00-3:00PM

Trade & Development

1. Discuss the importance of trade in developing the economy of nation.

Trade can be a key factor in economic development. The wise use of trade can boost a
country’s development and create absolute gains for the trading partners involved. Trade
has been commended as an important tool in the path to development by prominent
economist. However trade may not be the answer for development as important questions
surrounding how free trade really is and he harm trade can cause domestic infant
industries to come into play.

2. What is the role of Economic Development Banks in developing the economy of nation?

The banking system plays an important role in the modern economic world. Banks collect
the savings of the individual and lend them out to business like people and manufactrers
and also in the creation of new capital in a country and thus help the growth process.
They mobilize small savings of the people scattered over a wide area through their
network of branches all over the country and make it available for productive purposes.