Why are some countries less developed than others essay
Why do some countries have a higher gdp than others
The earliest advances of the industrial revolution were specialization and the division of labor. Climate in countries may also effect the development as the natural disasters occurring there can stop them from developing. The "freedom" to which economists often refer is free enterprise. For example Nike closed its factories in South Korea when wages started to rise, showing just how these MNCs exploit the developing countries. Many nations, however, have trade barriers that restrict their access to trade. America is increasing in certain things, but decreasing in other things. So, even in a country with relatively low GDP, some people will be better off than others.
Countries that support research and development, education and scientific research are likely to improve their supply of technology. Geography and Natural Resources Even a nation that is open to trade and technological change, one that has strong institutions and growth-friendly policies, might have a hard time reaching the standard of living of wealthier nations, because not all nations are created equal in terms of geography and natural resources.
Imagine two nations that were exactly identical in every respect—resources, population, culture, etc—except that one society had higher productivity. Also called capital goods and physical capital.
Why are some countries more developed than others essay
On the other hand , a country would meet wits end if it import good , more than it export. These include low levels of education, poor water quality or a lack of doctors. Conclusion From money and banking to taxing and spending, many factors influence economic growth. At times people living near navigation routes or in temperate climates have fared better than people living far away from coastlines or in frigid climates. Louis Review, Third Quarter , 98 3 , pp. They are willing to trade because it offers them both an opportunity to benefit. The countries then need to import these manufactured goods costing them more money than they earn selling raw materials in the first place, leaving them with no profits to develop the country, again holding them back. Crime, poverty, income disparity and armed conflicts can be a cause, or a result, of low economic growth. It is for these reasons that the Federal Reserve Bank of Minneapolis has chosen to ask the following question for its student essay contest: "Why are some countries rich and some countries poor? The "rules of the game" help determine the economic incentive to produce. Examples might be extreme flooding or desertification. The rest of this primer introduces four perspectives and the ways in which they can help explain why some nations are wealthier than others. Now it's your turn to use resources available on the Internet, in libraries and your school and community to research and write this year's essay. UK had an advantage to development as theres a lot of coastline so trade was much easier in the past.
While history has seen important advances like the compass and the printing press, it wasn't until the industrial revolution, beginning in the late s, that productivity really began to grow.
While there are many factors to consider, two stand out. Reducing the development gap is not an easy or short term task.
Since there are other factors to growth, a country's fate is not sealed by its geography. During times of economic growth, the overall wealth of a country increases, as do the variety and abundance of goods and services. There are many reasons why some countries are more developed than others: Historical reasons, environmental, and social and economic reasons.
Why are some countries richer than others essay
Yet some countries are still diverging. These countries are all LEDCs and have problems developing. This is a reminder that differing perspectives should be considered together. Some economists consider these factors pivotal in terms of economic growth. For example, if the United States places a tariff on imported automobiles, the price of cars in the United States will likely increase. For an economist, institutions are the "rules of the game" that create the incentives for people and businesses. For example, if a country is in a lot of debt, it cannot afford good schools. North and South Korea often serve as an example of the importance of institutions. These two nations share a common history, culture, and ethnicity. I have lived in India for six years after I have fleet from Tibet with is occupied by communist china, and it has been more than five years since I start my life in Australia So the techies get techier, and the laggards fall further behind. What would the economy be like if there were significant problems with this factor? Notes 1 Globalist. In these cases, groups can use their power to impede change.
Political factors - some countries are at war or the government may be corrupt.
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