Comm5 - Alex Yang Mrs. Goetz Econ IB SL 24 January 2010...

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Alex Yang Mrs. Goetz Econ IB SL 24 January 2010 Commentary #5 A less developed country or better known as a LDC is a country whose real gross domestic product per capita, the adjusted for price level changes GDP divided by the population, is low in comparison to world standards. In contrast, a developed country such as the United States has above average real GDP per capita. There are a variety of natural, human, physical as well as institutional factors that contribute to economic growth and development, while other barriers to growth such as political instability prevent development. For example, areas such as Iraq have extremely low real GDP per capita because whenever their government recovers or they rebuild their institutions, a political opposition like the Taliban engages in terrorist attacks resulting in the destruction of infrastructure, ultimately halting economic growth and development. In the article “Pimco’s Gross Recommends ‘Less Levered’ Countries Bill”. Gross, the president of the Pacific Investment Management Co., suggests that investors should seek opportunities in less developed countries such as China, Brazil, and India. His theory is based on
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This note was uploaded on 01/22/2012 for the course ECON 101 taught by Professor Smith during the Spring '11 term at Art Inst. Boston.

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Comm5 - Alex Yang Mrs. Goetz Econ IB SL 24 January 2010...

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