On Some Issues Related To Trade Strategies Of Developing Countries

Over the last few decades, the individual economies of the world have become increasingly interconnected through investment, migration, and international trade that has affected the dynamics of their economic development. The purpose of the paper is to analyse positive and negative aspects of foreign trade policies in the context of the economic development of developing countries regarding their internal economic, political, or institutional specifics. We argue theoretically and analyze the basic strategies of foreign trade – outward-looking policy and inward-looking policy. We use available theoretical knowledge from the field of international economic relations and developing economics. In conclusion, we state that the mentioned foreign trade strategies are often used gradually, and their implementation is related to the specific characteristics of developing countries. Factors influencing the choice between strategies are the size of the market, the availability of financial resources, the degree of state autonomy, or international attractiveness.