What Makes Poor Countries Poor?

What Makes Poor Countries Poor? In the past century, the world has seen absolute scientific and technological advancements that have greatly improved the serviceman condition. Thanks to these developments in communications, transportation, medicine and agriculture, the wealth of developed nations has increase at phenomenal rates. Unfortunately, not all countries have experience these benefits. Many nations still have a per capita GDP of $ constant of gravitation or less. These countries continue to be poor because they have superior barriers to trade and lack a stable government and substructure that can foster an entrepreneurial climate. For many nations it is very commonalty to impose barriers to trade. These come in the forms of proud tariffs and quotas that keep distant issues expensive and protect domestic markets. While in surmisal they protect a countrys workforce, barriers to trade actually contract countries worse off economically by preventing them from being dynamic in international trade. High tariffs prohibit countries from producing goods that they are nearly efficient in producing, and force them to provide such a wide variety of goods that they become very inefficient.

This violation of the impartiality of Comparative Advantage keeps nations poor because they cut themselves off from engineering science and maintain low standards of living due to the lack of opposition to produce high quality goods. This problem was illustrated in The economist which stated that tariffs imposed by industrial nations are 10% lower than those of developing nations (The Economist, July 1999). Thus, developing countries are poor because of the high tariffs that they themselves impose on imports. If these nations would lower trade barriers it would allow them to import goods they do not efficiently produce and as a consequence, jobs and capital would be reallocated to more productive sectors of the economy. By way on these sectors of high productivity, the country can then get down profits through... If you want to get a full essay, nightclub it on our website: Orderessay

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