Global trade plays an important role in the economic growth of developing countries. This practice allows these countries to integrate into the global economy, facilitates access to international markets, and increases the competitiveness of local products. In this context, the impact of global trade on the economies of developing countries can be seen from several aspects, including economic growth, job creation and transformation of the industrial sector. First, global trade encourages economic growth through increasing exports. Developing countries, such as Indonesia and Vietnam, have experienced significant surges in exports of goods and services. This not only increases national income but also strengthens their position in the global supply chain. By opening access to international markets, these countries can take advantage of abundant natural resources and labor to produce competitive products. Second, global trade creates new jobs. Much foreign direct investment (FDI) is directed towards the industrial and manufacturing sectors in developing countries. Multinational companies often choose to locate in these countries because of lower labor costs and government incentives. Thus, many local residents find work, which has a direct impact on poverty levels. Work in the formal sector is also often accompanied by training and skills upgrading, which increases productivity. However, global trade also brings challenges to developing countries. Competition from developed countries and other countries that have competitive advantages can harm local industries. Sectors that are not ready to compete can be depressed, leading to business closures and job losses. On the other hand, dependence on commodity exports such as oil and minerals can make the economy vulnerable to world price fluctuations. The transformation of the industrial sector is a key factor in taking advantage of global trade. Developing countries must invest in innovation and technology, improve product quality, and build adequate infrastructure. Increasing production capacity and transport connectivity will ensure better access to international markets. In addition, providing support to local farmers and producers to obtain global certification can increase the competitiveness of their products. Lastly, trade policies and free trade agreements also play an important role in influencing the impact of global trade. Developing countries need to formulate policies that support the growth of the domestic sector while remaining open to global markets. By adopting an inclusive and sustainable development model, and involving the community in the decision-making process, the quality of welfare and economic competitiveness can be improved. Overall, global trade offers opportunities and challenges for developing countries. With the right strategy, the positive impact can be maximized, making these countries more resilient in facing the ever-changing dynamics of the world economy.
