Would diversification necessarily help developing countries

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Question: 1. This chapter has indicated that diversification of the LDCs' export bundles so that they contain relatively more manufactured goods could potentially alleviate both the instability problem and the possible terms-of-trade problem. Why so? In your view, would such diversification necessarily help developing countries? Explain.

2. In the context of external sector problems, what case can you build for the formation of common markets among LDCs? Considering Chapter 17 and this chapter together, would you recommend that such international coalitions be formed? Why or why not?

3. Build a case in favor of forgiveness of external debt of developing countries.

4. Build a case against forgiveness of external debt of developing countries.

Reference no: EM132177258

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