The World’s Poorest Countries Are at a Competitive Disadvantage in Every Sector of Their Economies. They Have Little to Export.

The world’s poorest countries are at a competitive disadvantage in every sector of their economies. They have little to export. They have no capital; their land is of poor quality; they often have too many people given available work opportunities; and they are poorly educated. Free trade cannot possibly be in the interests of such nations! iscuss.

Poor countries have no. of barriers for their national growth. Surrounding conditions make them more dependable upon other countries for their common needs. Characteristics of Poor Countries Low capital: Industries are not developed. Less investor is available. Source of income of citizens of poor countries are limited. The have less manufacturing units. !esources of countr are underdeveloped or no developed: !oads" #lectricit" transports" etc. are not developed. That$s wh setting up organization or doing investment is risk factors. Literac !ate is low: Less people are educated thus we found less skilled labors. %ut at present stage both skilled and unskilled labor are necessar for using good technolog and production.

!aw &aterials 'navailabilit: !aw materials are less available or unavailable. It ma be gathered from distance sources that incur high e(penses. Poor infrastructure for production of product ) services: *ue to undeveloped mode of ever sector " Production infrastructure is not suitable. &arkets are not available: &arket for products are not available. People want low cost product because the have less sources of income. Customers are less available for good products: +igh ,ualit products are costl. The are not beared b customers because their purchasing power is low. &ore dependent families: Less people earn and more people want to consume. It means more people are dependent upon income generating members. Lands are not suitable for agriculture: Lands are mostl barren due to poor irrigation sstem" mismanagement of water" unavailabilit of modern agriculture methods application and tools" etc. People depend upon still upon ancient irrigation sstem. Cheap labors are available: Labors are easil available at low costs but the are mostl unskilled. So the are useless in technical  works or in high rated pro-ects. pro-ects. Poor Technological *evelopment: *ue to poor infrastructure of !)* and unskilled emploees" technological innovations ma not possible and even tuff task. atural *isaster are bane: In the time of flood" earth,uake" Tsunami" *raught" etc. People are becoming helpless. %ecause the have not good rescue sstem and disaster control sstems available. Industries are also feeling insecure due to heav losses. Poor +ealth sector: well in case of infection or viral desease the have no good health services available so the infection of deseases are become high. *eath rates increase. #.g. /frican countries are badl affected with such cases. &ost of the time the depend upon '0" 1+0 or other countries for help. *irt Political structure ) corruption rate is high: &ostl in these countries" !ich persons dominate the politics. The e(ploit poor for their own interests. 2or ever work bribes are re,uired Cross cultural %arriers: *ue to different language and culture" %usiness adaptabilit in these countries are tuff. Less persons know 3

international languages. #conomic development is low: It leads nation growth is low. 4*P and per capita income are also low. /lso the value of currenc in these countries is low. 5udiciar or Legal procedures are so comple(: Industries feel so uncomfortable due to length legal procedures and sanctions. #(port are less : *ue to low production e(ports are less found but in other hand imports are more because the are more depend upon neighbor countries for their needs. 2ree trade is not possible: Custom duties" ta(es and other charges are main source of income for countr. The import products from different countries and impose heav duties upon them. That$s wh free trade is not possible. Comple( international trade procedures: These countries make comple( their procedures and documentation to charge more duties from foreign countries. That is not favorable for liberalization and globalization for international trade. Product costs are high: *ue to heav custom duties" unavailabilit of raw materials and poor resources condition like transport add e(tra e(pense. Thus final price of product become so high. That is not affordable for ma-orit of customers. +*I is low and povert inde( is high: 0n that case. 1e found that +uman development inde( of these countries are so low and povert inde( are high. 2indings : Poor countries have no. of barriers for their national growth. Surrounding conditions make them more dependable upon other countries for their common needs. I have tried to ad-udge through the characteristics and circumstances of these poor countries. Their conditions are more critical in the time of natural disasters or epidemics. /ll the time the are depending upon international blocks like '0" 1+0" 1orld %ank" etc. These countries national debts are so high and value of currenc is so low. It has been gained that free trade is not possible in these these countr countries ies due to these these countr countries ies interes interestt and legal legal diffic difficult ulties ies generat generated ed b these these countries for their own profits. These circumstances make their life more critical because people are unable to fulfill their needs due to high prices of products. That$s wh we found death rates are high in these countries and living conditions of people are so low standard. That$s wh high price products like cars" lifts" etc. are less sold in these countries. Conclusion : Poor countries are still live in the old periods we can sa due to their problems. Their was and concepts are old for business. The have no choices of free trade that$s wh the impose heav duties upon imports of products. %ut their impacts are vice6versa upon these countries people. %ecause that make more inabilit of persons while purchasing products due to high high pric prices es.. +uma +uman n reso resourc urces es have have been been e(pl e(ploi oite ted d or trea treate ted d unfa unfair irl l b givi giving ng low low compensations and facilities. It is the matter of discontentment among emploees. Peoples have been e(ploited b bureaucrats" politicians and wealth persons of these countries. Criime rate rate is high high and legal sstem sstem is not much accounta accountable ble.. That That leads leads to insecu insecurit rit  of firms firms""  warehouses" offices and other properties and goods of organization. 0utdated products are still in emerging stages in these countries. So this is a good factor in case of import in these countries. *ue to less market presence and less customers availabiit for their products and services. *ue to Poor resources" low infrastructure" not favorable business environment and high custom duties ) comple(ities of procedures in these countries" foreign firms and investors are not willing to e(pand their trade and doing investment in these countries.

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