Developing and Transitional Economies

Developing and Transitional Economies - 2. What are the...

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Developing and Transitional Economies Robert McGill BA 201 Microeconomics 4 April 2011
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Developing and Transitional Economies   1. Among the problems that hinder growth in developing economies are poor infrastructure, lack of financial institutions and a sound money supply, a low saving rate, poor capital base, and lack of foreign exchange. Explain how these problems are interconnected. A proper physical infrastructure or transportation and communication systems and utilities is needed to link economic participants. Trusted financial institutions help link savers and borrowers to entrepreneurs with the vision to move a nation forward.
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Unformatted text preview: 2. What are the arguments for using real per capita GNI to compare living standards between countries? What weakness does this measure have? In analyses and comparisons of living standards between countries and over time, it is more relevant to study GNI in relation to the price of final domestic demand. GNI must be related to the population, that is, measured per inhabitant. Obviously, in comparing living standards between countries, but also growth, it is important to adjust for different rates of population growth....
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Developing and Transitional Economies - 2. What are the...

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