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Explain the key issues in relation to the developing nations concerning the characteristics of economic growth.

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Essay No.2 Jong Bae, Moon Explain the key issues in relation to the developing nations concerning ; the characteristics of economic growth. Economic growth refers to an increase in a country's ability to produce goods and services. The advantage of economic growth is that an increase in real national income allow more goods for consumption. The income of a country can be measured by its GDP or GNP. The GDP measures the value of goods and services produced by the firms of an economic in one year. It can increase due to two basic reasons or a combinations of both. First, the value can increase because the amount of goods and services actually produced during the course of one year has increase. ...read more.


A developing country or less developed country (LDC) is one which is not yet fully industrialized and tends to have the following features : * Agriculture is more important than manufacturing. * There is limited specialization and exchange. * There are not enough savings to finance investment. * Population is expanding too rapidly for available resources. * A low standard of living. A developed country is more fully industrialized and has a high standard of living. All of these characteristics are inter-dependent and self-reinforcing. ( Diagram 1 ) Rapid growths arising from increased productivity encourage further research and further technological change, which in turn leads to further growth. (Diagram 2) Growth in productivity raises incomes, which raises demand, which stimulates markets to grow and innovate further. ...read more.


They must also offer incentives for the discovery of new ideas at home, and this is not easy to do. The same characteristic that makes an idea so valuable - everybody can use it at the same time - also means that it is hard to earn an appropriate rate of return on investments in ideas. The many people who benefit from a new idea can too easily free ride on the efforts of others. Structure / Outline Introduction Definition of Economic growth Body 1) Two reasons to measured Economic growth 2) LDC features related to Economic growth 3) Economic Characteristics with Diagram Conclusion Role of Developed nations for LDC Diagrams Characteristics economic growth Economics HL Explain the key issues in relation to the economic concerning ; the characteristics of economic growth. Name : Jong Bae, Moon Grade : 11th Economics HL1 ...read more.

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