Trade in Third-World Countries - Essay Example

Rivoli postulated that to boost productivity it is essential to manage the amount of capital allocated to the area. On the same note, by increasing the capital allocated to the textile industry for instance, more products of high quality will be produced and as a result, more capital will be generated both locally and as foreign exchange. Moreover, Lamy has demonstrated that the reduction of the cost of running a business can go a long way toward improving productivity and as a result the infrastructure of the business as a whole. He suggests that open trade between third-world countries can contribute greatly towards a reduction in business costs. It is clear that productivity goes a long way in determining the success of the business thus it is mandatory to employ strategies that increase the productivity of the industry.