Characteristics of Developing Countries

Question 1

Standard of Living

Answer 1

Lack of available jobs leading to low levels of income and saving contributing to poverty.

Question 2

Productivity

Answer 2

Low productivity from a lack of investment, infrastructure and capital.

Question 3

Savings

Answer 3

Low incomes and a lack of jobs result in low savings, hard to escape the poverty cycle. Can be due to a lack of financial institutions/education.

Question 4

High Population Growth

Answer 4

Requirement of families to produce children for financial support.

Question 5

Agricultural Dependance

Answer 5

Growth in these industries where there are a high quantity of natural resources

Question 6

Incomplete Markets

Answer 6

Lack of requirement for their currency or no financial institutions.

Question 7

High under/unemployment

Answer 7

High dependance on agriculture and no education to promote other secondary/service sectors.

Question 8

Low Economic Power

Answer 8

Countries cannot influence or manipulate trade in their favour.

Question 9

Overall

Answer 9

These contribute to barriers to trade, but not all countries are the same.