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Is the balance of payments a problem?
A persistent balance of payments shortage is bad when used to finance consumption, but good when financing imports of suitable capital which raise productive capacity.
• Imports of goods for recent consumption satisfy requirements currently but, unlike capital goods, do not raise productive capacity. Simply BoP shortages from importing capital goods can be then arranged.
• Exports. Whole export earnings depend onto both the quantity of exports sold and the price paid for exports. Specified export prices reduce over time, LDCs lose revenue unless they can repeatedly increase export volumes.
What are Rostowís policy implications? • LDCs (Less Developed Countries) require aid. The development procedure can stall at the Take Off stage for be short of savings. 15
Does aid improve development? Aid improves development as: • Aid is utilized to increase productive capacity and the advantages of resultant growth is extensively spread an
QUESTION No point is better accepted than the fact that the monopoly price is higher and the output smaller than what is socially ideal. The public is the victim. (a) Distin
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Question 1: Poverty reduction is generally influenced by changes in average income and income redistribution. Thus, in practice it is hard to adjust to the right balance betwee
Importance of production.
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An organization that manages the creation and dissemination of rules and standards in approximately every U.S. business division. ANSI is also keenly involved in the accreditation
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