(1) How do developing and industrial countries differ in their use of technological change, labor,...

Question

(1) How do developing and industrial countries differ in their use of technological change, labor, capital, and natural resources to produce economic growth? Why do these differences exist?
(2) Policy makers disagree on the benefits and disadvantages of the interactions between developed nations and developing nations. Some say that developed nations don't want developing nations to grow technology so that they can just exploit their resources. Others say that makes no sense since the growth of developing nations leads to competition, cheaper prices and expanded choices for all. Which of the above do you agree with and why?

David · Accepted Answer

1) Industrial countries intensively use capital in their production, and foster rapid 
technological change, whereas the developing countries intensively uses labor and 
natural resources, since such goods provide these countries with competitive 
advantage and core competence.
The reasons are two-fold. One, the developing countries are typically abundant in 
labor and natural resources, so they engage in producing goods and services that 
intensively use their abundant resources. Similarly, industrial nations are rich in 
capital and technology,

(1) How do developing and industrial countries differ in their use of technological change, labor, capital, and natural resources to produce economic growth? Why do these differences exist? (2) Policy...

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