How is the global develpoment gap reducing?

Question 1

What are the different types of aid?

Answer 1

Bilateral aid
Multilateral aid
NGO AID

Question 2

What is an example of an aid project by an NGO?

Answer 2

Practical Action

Question 3

What does NGO stand for?

Answer 3

Non govermental organisation

Question 4

What is Foreign Direct Investment?

Answer 4

An investment made by a firm or individual in one country into a business in another country

Question 5

What does FDI stand for?

Answer 5

Foreign direct investment

Question 6

What is a benefit of FDI?

Answer 6

Can reduce development gap

Question 7

What is an example of development through trade?

Answer 7

South Korea, for example, was able to develop rapidly by promoting exports of light manufactured goods (e.g. textiles, leather, wood, paper) and, more recently, electronic goods.

This helped increase GNI per capita (income per person) from $87 in 1962 to around $48,000 today.

Question 8

What are the downsides of FDI?

Answer 8

Some countries lack the comparative advantages of South Korea and struggle to compete in the global marketplace. Even if they can compete, much of the profits flow back to the wealthier nations.
Furthermore, free trade can mean workers are vulnerable to being exploited; working long hours, very low pay, unsafe conditions, and child labour.