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GEORGIAN FOREIGN TRADE POLICY IMPACT ON INCOME DISTRIBUTION

Journal: Innovative Economics and Management (Vol.III, No. 1)

Publication Date:

Authors : ;

Page : 71-75

Keywords : Foreign income distribution effects; a growing sector; enterprise factors owner; trade liberalization; the relative price changes.;

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Abstract

Introduction. Foreign income distribution effectin Georgia is different for different social groups. Liberalization of foreign trade will further grow rich already rich part of the society: wholesalers, businessmen, large entrepreneurs, investors, banks, insurance companies and economically active subjects that while the foreign trade further impoverishes the already poor layer of the society, who do not have the financial, physical or mental ability to be actively involved in the trading process, and they are unemployed or employed in other firms. The purpose of statistic study is to determine the effect of our country's foreign trade policy pursued by the government of Georgia income distribution between certain groups of population. Research methods. To achieve this goal have been used in research work possessing process has been used methods of dialectical materialism, historical, logical analysis and synthesis. Georgia's liberal foreign trade policy will result in an even more vulnerable layers of society gets more pure. For example, if there is high tariff on shoe and clothing import, but nevertheless, the producers still have low incomes, while their customers – are rich, then, a liberal foreign trade towards the fashionable pursuit of these trade barriers are even more serious financial problems for shoes and clothes local entrepreneurs and will bring slight economy to already wealthy customers of these commodities. This will further increase unequal distribution of revenue. Therefore, foreign trade excessive liberalization is unprofitable for local entrepreneurs.

Last modified: 2018-02-14 17:43:36