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Development (4.3Domestic Factor (Infrastructure (Productivity, water and…
Development
4.3Domestic Factor
Health and Education
Appropriate Technology
Credit and Micro-credit
Empowerment of women
Income distribution
Infrastructure
Productivity, water and energy supply
ineffective taxation system
Know the evaluation of positives and negatives
4.4 The Role of International Trade
Trade strategies for economic growth and development
Import substitution
Export promotion
Trade liberalization
Market-based supply -side policies
Over-specialization on a narrow range of products
Export earnings are vulnerable to changes in conditions of world demand and supply
Inability to access international markets
Tariff secalation
High tariff barriers imposed for ELDCs
leading to misallocatetionand inefficiency of global resources
Greater poverty of ELDC farmers.
Price volatility(fluctuating) of primary products
Unstable export earnings and employment
Uncertainty on investment.
Multilateral development assistance (both Conditional)
The international Monetary Fund(IMF) (Contractionary demand-side policy and currency devaluation to reduce imports and increase exports, market based supply side polic, trade liberalization)
The world Bank
4.1
Quantity of physical capital() productivity
Quantity of human capital
Improvements in appropriate techonlogy
Institutional changes(fair legal and property system and tax and banking systems)
4.5 FDI
Foreign Direct Investment(FDI)
Investment by a firm originating in home contry in productive facilities in another country, carried out by MNCs.
Multinational corporation (MNC)
A firm that carries out foreign direct investment, thus having productive investment in more than one country
Evaluation
Advantage and Disadvantages of FDI for ELDCs
Why choose ELDC
4.6 Foreign aid
Official Development assistance(ODA)
Humanitarian Aid
Food aid
medical aid
Development Aid
Grants(gifts, no repay)
concessional long-term loans
Non-governmental Organization(NGOs)