Can You Describe The Characteristics Of Underdeveloped Economy?

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Can You Describe The Characteristics Of Underdeveloped Economy?

2 Answers

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Answer 1

There are six main characteristics that represent an under developed economy. These are:
· Primary production: The production of these countries consists mostly of raw materials and a large portion of the population is associated to agriculture.
· Population pressure: The households are dependent on one person’s income while rest of the family members don’t contribute to income.
· Underemployment: The resources are either under utilized sue to lack of investment or they are being misused.
· Economic backwardness: There is low efficiency in the methods of production and labor lack of entrepreneurship and the tax collection is also low. The overall system is inefficient.
· Capital deficiency: There is a dearth of capital and the formation of investment is also low.
· Orientation towards foreign trade: As they are unable to produce finished goods, such nations are heavily dependent on foreign goods and services.

Answer 2

These terms are synonyms and convey identical meaning. An underdeveloped country is one in which per capita real income is low when compared with the real per capita income of the U.S.A., Canada, Australia and Western Europe. " Under developed countries are those which when compared with the advanced countries are under equipped with capital in relation to their population and natural resources." " A more useful definition of an underdeveloped country is that it is a country with good potential prospects for using more capital or more labor or more available resources, or all of these to support its present population on a higher level of living. "The under developed country is that in which people have low level of living (poverty, poor health, low education and other social services), low self esteem (low respect honor, dignity) and limited (freedom of choice etc.). All these three factors work in a cause and effect cumulative process and increase under development."" A country is said to be under developed which is characterized by the co-existence in greater or less degree of un-utilized or under-utilized man power on the one hand and of un-exploited natural resources on the other characteristics of an under developed country."