International Economics

Question 3Developing economies progressively enhance their focus on the manufacturing vault of heaven because it enables them to gain greater private-enterprise(a)ness in the international foodstuff . in that location is already a considerable level of competitive ambition existing in the first products attention . An extra paradox is that firms in the growth countries cannot charge higher prices on primary products which are protected by trade barriers in just about countries in the form of tariffs and quotas . Therefore growing countries curb to retire in the infrastructure which can facilitate the process of growth a manufacturing-driven industry . However the funds needed to seduce the industries may not be available internally . As a result , the governments in the bettering countries attempt to commit unus ual educate investment . This can take come out of the closet out in the form of large corporations from ariseed economies globalizing their operations to pin down up presences in develop countries .

In this manner , the developing countries develop the infrastructure to export require productsThe shift to exports of manufactured products in addition occurs because of the need to develop human capital . As the workforce in the developing country gains in price of education , more of the masses shift from the rural industry to the manufacturing industry . As a result , the governments in the developing countries have to generate handicraft opportunities . This objective is met e ffectively by means of foreign direct inves! tment . However the developing countries also have to develop industries of their own in to compete with foreign industries . As a result , the focus of economic activities shifts from agricultural activities...If you want to desexualize a full essay, order it on our website: OrderEssay.net

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