Essay --

The difference between developing and developed nations depended mainly on the basis of economics. Gross domestic product (GDP), is the Most commonly criteria for evaluating the degree of economic development, general standard of living, per capita income, amount of widespread infrastructure, and level of industrialization. A developed country has a highly developed economy and advanced technological infrastructure compared to other less developed nations. Carbaugh (2013) developing countries are able to export manufactured goods and services to the developed countries like agricultural goods, raw materials, and labor intensive (such as textiles) which related to primary products. In the last three decades, some developing nations include China, Mexico, Turkey, Vietnam, and so on; have increasing their exports of primary products significantly. For example, according to the Export Promotion Center of Turkey, Turkey, as a major cotton producer the export value of Turkey's technical textiles and nonwovens was estimated at more than US$1.2 billion in 2008. Turkey exports its technical textile products predominantly to different developed nations such as Germany, France, Spain, Italy, and the United States. This increase as a result of economic reforms in Turkey based on free market principles, an international orientation, and reducing government intervention. This paper explain whether the government intervention in international trade g ood or not for a developing nations. Protecting domestic producers from the competition of imports is an economic policy adopted in most developing countries known as import substitution. During the Period from 1930 to 1980 many Latin American countries implemented import substitution policies. This... ...and limit foreign investment. The government allows the foreign projects as long as they recognizing the state’s permanent sovereignty over natural wealth and resources. This intervention of government has a positive effect by helping the domestic firms to growth. At conclusion, free trade and government intervention cannot be separate; the country should have free trade and positive government intervention. Free trade tends to be inequality in income, wealth and opportunity. Without government intervention, firms can exploit monopoly power to pay low wages to workers and charge high prices to consumers. The positive government intervention can regulate monopolies and promote competition and redistribute income within society. Moreover the positive government intervention in the foreign direct investment was helping the domestic firms to growth.