1) Describe how absolute per capita income gap between the rich and the poor nations might raise, even if per capita income is increasing faster in the DVCs rather than it is in the IACs.
2) Explain the features of the developing nation? Specify 2 basic avenues of economic growth accessible to such a nation. Specify and describe the obstacles which face DVCs in breaking poverty barrier. Utilize the ‘vicious circle of poverty’ to underline in detail, the steps a DVC might make to begin the economic development.
3) Describe the following given statements:
a) ‘The path to the economic development has been evidently blazed by the American capitalism. It is solely up to the DVCs to follow this particular trail.’
b) ‘The problem with DVCs is that income is too equally distributed. Economic inequality encourages the saving, and saving is precondition of the investment. Thus, greater inequality within the income distribution of DVCs could be a spur to the capital accumulation and growth.’
c) ‘The core of economic development includes altering the human beings more than it does changing a physical environment of nation.’
d) ‘The U.S. “foreign aid” program is a sham. In general it signify the neocolonialism—a means through which DVCs may be nominally free in the political sense however remain completely subservient in an economic sense.’
e) ‘The biggest obstacle that is faced by the poor nations in their quest for the development includes the lack of capital goods.”
4) Studies signify that, landlocked countries tend to have lower per capita income levels rather than surrounding nations that border on oceans and seas. Explain why do you think this is the case? Use the Global Perspective 39-1 to recognize the major exception to this generalization. Why do you think this exception is there?