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Poverty in one nation would mean that:

-The potential output from that country is not made and therefore, the countries that trade with it would fail to exploit and benefit from their comparative advantages.

-Poverty would mean hat there would be aids given out from the more richer countries. This in return would mean higher expenditures for this country.

-Since poverty is closely linked to political instability, this would mean a greater trouble for world security.

-If the level of poverty is high enough to affect the government, it would mean that they are more likely to default on their foreign debts.

-The level of poverty would also mean that for the neighboring countries, they would need to watch out for the flow of immigrants running away from the country in poverty for a better life. THis, if uncontrolled would create a huge social problem.

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14y ago

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