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Developing countries often face challenges in producing capital due to limited access to financial resources, inadequate infrastructure, and a lack of skilled labor. Political instability and corruption can deter investment, while high levels of poverty restrict domestic savings. Additionally, reliance on foreign aid and investment can hinder local capital formation, as it may discourage entrepreneurship and innovation. These factors collectively create an environment where capital accumulation is significantly stifled.

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What developing countries produce sugar?

2007/08ProductionMillion TonsExportsMillion TonsPopulationMillionsPer Capita Consumption KgsBrazil31.35520.95719058India28.8043.29811720EU17.5671.40049034China14.674-31411Thailand8.0335.2886536United States7.701-30129Mexico5.9780.35010752SADC5.8342.41015722Australia5.0133.7502047Pakistan4.891-16525


Why might a country like China decide to produce labor intensive goods while a country like the US would decide to produce capital intensive goods?

Simple answer: the Hecksler-Ohlin model of trade describes that countries, as they specialise in goods in which they possess comparative advantage, devote labour/capital to that good. In this case, other goods are pushed out of the market as the dominant input (labour or capital) in the advantaged good rises in price. I.e.) China specialises in manufacturing; manfacturing is labour-intensive. Labour and capital shift to manufacturing. The price of the two rises, pushing other goods out of the market, especially capital-heavy goods (since labour is needed in manufacturing). In general, many countries specialise in a good because they possess plentiful inputs needed for that good. I.e.) The U.S. has a lot of capital. Therefore, capital has more competition and is cheaper to access. Capital-intensive goods are cheaper to produce, and so more capital-intensive goods are produced with higher profit-margins.


What is a good that is sent out of the country?

Those are called exports. Every country has different goods that they produce and export to other countries.


When a country is able to produce a product at a lower price than other countries it is said to have?

lopol


When can two countries benefit from trading two goods?

Two countries can benefit from trading two goods when each country specializes in producing the good it can produce most efficiently, and then trades with the other country for the good it cannot produce as efficiently. This allows both countries to maximize their resources and benefit from the trade.

Related Questions

What country does not produce coal?

small countries such as Singapore


Which country produce large quantity of Sternum?

The Western countries produce the large quantity of Sternum.


What countries produce polyester?

the country that produces polyester is Asia.


Which country or countries produce both emeralds and sapphires?

US & India


What are the characteristic of developing countries?

The characteristics' of developing countries are economic growth ,and culture because the culture is the type of behavior or such as traits by what you might be living or learning. Economic growth is the population of peoples, animals, or plants that are gaining a role a(n) important cycle in peoples or animals lifes. Also, Economic growth has something to do with the "adaptations."


In what country or countries did Salvador Dali produce artwork?

Spain, France, the USA.


Which country produces tractors forklifts buses?

Many modern countries produce them


What developing countries produce sugar?

2007/08ProductionMillion TonsExportsMillion TonsPopulationMillionsPer Capita Consumption KgsBrazil31.35520.95719058India28.8043.29811720EU17.5671.40049034China14.674-31411Thailand8.0335.2886536United States7.701-30129Mexico5.9780.35010752SADC5.8342.41015722Australia5.0133.7502047Pakistan4.891-16525


What country does lamb come from?

Most countries produce lamb but WALES and NEW ZEALAND produce especially good lamb.


Why might a country like China decide to produce labor intensive goods while a country like the US would decide to produce capital intensive goods?

Simple answer: the Hecksler-Ohlin model of trade describes that countries, as they specialise in goods in which they possess comparative advantage, devote labour/capital to that good. In this case, other goods are pushed out of the market as the dominant input (labour or capital) in the advantaged good rises in price. I.e.) China specialises in manufacturing; manfacturing is labour-intensive. Labour and capital shift to manufacturing. The price of the two rises, pushing other goods out of the market, especially capital-heavy goods (since labour is needed in manufacturing). In general, many countries specialise in a good because they possess plentiful inputs needed for that good. I.e.) The U.S. has a lot of capital. Therefore, capital has more competition and is cheaper to access. Capital-intensive goods are cheaper to produce, and so more capital-intensive goods are produced with higher profit-margins.


What African countries produce petroleum?

Nigeria is an African country that has petroleum reserves.


What is a good that is sent out of the country?

Those are called exports. Every country has different goods that they produce and export to other countries.