Developing countries competing with developed countries Discuss alternative methods that developing countries could use to overcome the difficulties they face when trying to compete with developed countries. No sectors attracted Including foreign direct investment (FDI) Economic development occurs when a country improves the economic well-being of its population, for example by reducing poverty. Some economists define the world as a “developed north” and an “underdeveloped south”. This refers to the gap between rich countries, which are mainly located in the Northern Hemisphere, and poor countries, which are mainly located in the Southern Hemisphere. This is not the only method used to classify countries, the World Bank and the United Nations classify countries into high, middle and low income countries while the International Monetary Fund (IMF) classifies countries into less developed countries, development and industrial. I believe many underdeveloped countries are involved. in the "cycle of deprivation", which I have shown schematically above. If investment in a country is poor, it is easy for a country to get caught up in the cycle and make things worse for the economy. If LEDCs (least economically developed countries) have little money at their disposal, the country will undoubtedly have poor infrastructure, this will act as a deterrent for industry to move into the area as transport and communications will be of poor quality and will cause problems for companies. If little industry is attracted, there will be no jobs available and unemployment will rise dramatically. As described in more detail below, some multinationals take advantage of cheap labor in LEDCs, but because they pay very low wages, very little is invested in the economy and most of the profits leave the country, so there is no significant increase in investments. If unemployment is high, people will turn to subsistence farming as they will need to produce food to survive, so farmers will not earn money and therefore will not invest in the economy. If there is little investment in the economy, there will be little money available to the government, so healthcare, education and infrastructure will not improve and there is little chance that the economy will develop without external interventions, as I will describe later. ...... half of the sheet ......id. The latter requires the recipient to purchase goods and services from the donor country. The World Bank and the IMF (International Monetary Fund) provide loans to developing countries aimed at improving their infrastructure, education and health services, restructuring the economy and addressing aggregate supply and demand shocks. I believe this policy, once again, can bring great benefits to a country if used wisely, or it can create even more problems for the economy. To conclude, I believe that it is very difficult for developing countries to compete globally with developed countries as they are disadvantaged in economic terms. many respects. I believe that the best way to increase the competitiveness of developing countries is to increase development in the countries and increase investment and this often requires external assistance. I believe that developing countries can overcome the disadvantages they face by successfully planning and using some of the policies mentioned above. The third world must not be alienated but welcomed into the global market, and only then will it not feel so discouraged by the prospect of competing with the superpowers of the industrial world..