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relationship between countries at different levels of development - Coggle…
relationship between countries at different levels of development
International Aid
Forms of Aid:
Bilateral Aid: Direct aid from one country to another.
Multilateral Aid: Aid given through international organizations.
Humanitarian Aid: Short-term aid provided during crises or emergencies.
Development Aid: Long-term aid aimed at improving infrastructure, education, and healthcare.
Reasons for Giving Aid:
Alleviate poverty.
Promote development and economic growth.
Political and strategic reasons.
Strengthen trade relationships.
Effects and Importance of Aid
Positive Effects:
Helps improve healthcare, education, and infrastructure.
Reduces poverty and inequality.
Negative Effects:
Can create dependency.
Mismanagement or corruption may hinder effective use.
May not always align with local needs.
Role of Trade and Investment
Trade:
Promotes economic development through export growth and market access.
Investment:
Foreign investments can boost industrial growth, create jobs, and bring in new technologies.
Trade vs Aid:
Trade is often seen as a more sustainable driver of development than aid.
Multinational Companies (MNCs)
Definition:
Companies that operate in multiple countries, usually headquartered in developed nations.
Activities of MNCs:
Set up factories or offices abroad.
Engage in foreign trade and investment.
Provide technology and management expertise.
Consequences of MNCs:
Positive: Job creation, technology transfer, improved infrastructure.
Negative: Exploitation of labor, environmental degradation, profit repatriation.
Foreign Direct Investment (FDI)
Definition:
Investment made by a company or individual in one country into business interests in another.
Consequences of FDI:
Positive: Promotes economic growth, creates jobs, improves infrastructure.
Negative: Can lead to dependency, repatriation of profits, and exploitation of resources.
The World Bank
Role:
Provides financial and technical assistance for development projects, such as building infrastructure and reducing poverty.
Focuses on long-term economic development and poverty reduction.
Funds education, healthcare, agriculture, and environmental protection projects.
International Monetary Fund (IMF)
Role:
Provides financial support to countries facing balance of payments problems.
Promotes global financial stability.
Offers technical assistance and advice on economic policy.