Ethiopia, all over its history, had established strong foreign relation. Although different regime had undergone differently over the century, the government had always urged for the external relationship to fill its gap. The need was all over, material and advisory assistance. However, the more Ethiopia exposed to the external world; the central power had tempted by different ideology. Building foreign relation had become hosting outside interest. The importance of cooperation, institution, and collective security had become the goals of the government. Though, Ethiopia had affected and influenced by foreign interest; the government had used all its effort to protect the economy from the liberal intuitional thought. Nevertheless, Ethiopia had not escaped this influential power of the western neo-liberal paradigm of development. Thus, this paper will show the plantation of the liberalized economy, how it restarted, what challenges it faced and what advantages does it brought into Ethiopia.