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Flashcards in domestic factors + role of int trade Deck (10)
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1
Q

list of domestic factors

A
  • education and health
  • appropriate tech
  • credit and micro-credit
  • empowerment of women
  • income distribution
  • institutional factors
2
Q

education and health (+analysis)

A

developing often has excess labour, but quality not high enough. ⇒ invest in ed

analysis

  • opp cost
  • entrepreneurs needed
  • social+cultural barriers to change

strong stat evidence that enducation/health → income growth + SoL

3
Q

appropriate tech

A

needs tech to reduce poverty

4
Q

investment

A

foregoing of current consumption for increased future consumption

5
Q

credit and micro-credit

A

investment requires saving and surplus income

(stock xchanges, invest bank.. not available)

6
Q

micro credit analysis

A

small loans for income generating activities

  • allows poor communities econ stability
  • allows resources without encouraging debt (debt crisis)
  • granted after training?
  • diversifies skills in community
  • encourages saving
7
Q

women empowerment

A

can play important role in development (unused labour)

  • education→ lower birth rates
    • ⇒less dependancy & pressure on infrastructure
8
Q

income distribution

A

unequal income → slowed growth (low income, high propensity to consume)

9
Q

institutional factors

A

taxes, legal, lack of prop rights, traditional culture → no development

10
Q

Trade problems for LEDCs

A
  • overspcialization
    • MEDC proctionism + specialzed→large damage
  • primary product price vulnerability
  • Unable to access int. markets
    • MEDCs promote free trade, but subsidize and trade barriers (quality standards that are too expensive)