How does trade affect the economic development of LIDC countries? Provide a case study to support your argument.

Trade is vital for economic development. Ethiopia is one of the least developed countries in the world. The country's main exports are mostly primary products such as coffee, flowers and vegetables. The country's imports consist of fuel and machinery, mostly from China, the United States or Saudi Arabia. Primary products are at risk to global inflation, climate change and unpredictable events including droughts and floods. Furthermore, the country's imports are much more expensive than their exports meaning that Ethiopia now has a trade deficit of approximately $8 billion, thus affecting the country's economic development. Despite this deficit, trade is essential for Ethiopia to develop it's manufacturing industries in order for the country to become less reliant on primary exports.