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Do all developing economies have same underlying problems?
Less developed countries are similar but exceptional. The impact of a problem will vary depending upon circumstances as like:
• Factor endowment,
• Infrastructure,
• The size and utilize of past current account deficits,
• Culture and legal structure,
• Sectoral balance,
• Open and transparent governance,
• Income distribution,
• Savings levels,
• Rural-urban imbalances,
• Openness of economy to world economy and capital flows
• Recent foreign debt levels
• Degree of dependence onto agricultural exports.
Do all developing economies have same underlying problems? Less developed countries are similar but exceptional. The impact of a problem will vary depending upon circumstances
Quantitative demand for watermelons = 50-3P(wm) - 20P(hd) + 10 P(sc) + 0.001(income) P(wm) = $4.00 P(hd) = $3.00 P(sc) = $2.00 Income = $40,000 Quantity supply of watermelons = 2
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