Describe some of the features hindering developing countries from growing faster
What will be an ideal response?
One of the features that can be hold developing countries from growing faster is corruption. The way governments control the economy by developing restrictions that would not allow international trade among other countries; knowing that by having the doors open for international trading the country can be better off. More over, governments also owning or controlling the largest industries, that produce more in the countries, and controlling international transactions, they do not led new opportunities to come into their society.
These governments also do tax evasion, which must of the time in some countries it's been out of control. Basically, developing countries have been managed by corrupt and inexperience peoples that just want to disturbed instead of encouraging new opportunities for a better future.
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Which of these government financing methods is generally the least inflationary?
A) Printing currency B) Borrowing from the banking system C) Borrowing from the central bank D) Borrowing from the non-bank public
If domestic saving is greater than domestic investment, then a country will have a ________ and positive net capital ________.
A. trade deficit; inflows B. trade surplus; outflows C. trade deficit; outflows D. trade surplus; inflows