4.3 - Developing and Emerging Economies

Question 1

Explain the primary product dependancy factor.

Answer 1

Primary product dependancy is where the

Question 2

Give a factor of growth and development.

Answer 2

Capital flight - Individuals especially from developing nations may send large sums of money to be stored in a safer country, primarily as a response to economic crisis or civil unrest. This will decrease the level of savings in the developing country, hence contributing to weaker economic development.

Question 3

Give another factor of growth and development.

Answer 3

Education and skills - To reduce human capital inadequacies, education and training of the workforce is crucial to ensure workers have the skills base required for the workplace. This in turn allows the economy to compete within a highly competitive environment.