Pearson 27 28 domestic and international factor

low income --> low skills --> lack of job opportunities --> high living costs --> next 

• malnutrition 
• debt 
• education 
• low productivuty 

country landlocked --> no access global markets -> no foreign income -> next 

• no savings 
• no investment 
• no jobs 
• no exports 

poor education -> low skills -> low productivity -> low taxes -> next 

• high unemployment
• health problem 
• minimal spending on education system
• no access to global markets 

poverty -> civil unrest -> violence -> political uncertainty -> next 

• war
• reduced foreign investment 
• increased foreign aid 
• access to global markets 

poverty ->limited education ->  low incomes -> poor health -> low productivity -> low savings  -> no formal banks -> next 

• low investment -> low growth _>
• no credit ->no spending ->
• no loans -> no debt ->
• no infrastructure -> no exports ->

there is a direct correlation between 
1 education 
2 smaller families 
3 democracy 

• 1only
• 1 and 2 
• 2 and 3 
• 1 2 and 3 

micro credit is focussed on all of these except 

• small village communities 
• women 
• children
• men

many LDC's are described as banana republics because 

• they are run by poor gvernments and sell bananas
• they are dependent on one or two commodity exports and are recently independent 
• theye believe in freedome democracy and primary agriculture 
• they have slipped up on their economy by relying aon one export 

the problem most LDC's face is when they export goods like coffee tea cocoa - they are 

• inelastic demand 
• income inelastic demand and also suffer from market gluts 
• inelastic supply
• they face favourable terms of trade 

unfavourable terms f trade are a problem for many LDC's and it means 

• countries  won't make trade agreements with them except through the WTO
• they have to sell less exports to buy the same amounts of exports 
• $100 of exports only buys 70$ of imports 
• theyt have imnflation whiich depreciates their currency and makes exports more expensive