Studied by 1 personDebt repayments
________ cause a major drawbacks to money borrowed previously.
Capital fight
________: is the movement of large sums of money out of a country as a reaction to political or economic instability.
High income inequality
________ can be a barrier to growth and development for a number of reasons.
Poverty trap
________ (poverty cycles): any linked combination of barriers to growth and development that forms a circle, thus self- perpetuating unless the circle can be broken.
Price elasticity of demand
________ for commodities and price elasticity of supply commodities to be relatively inelastic.
Corruption
dishonest exploitation of power for personal gain
landlocked countries
those surrounded by other countries with borders, trade less and have slower growth rate
ineffective taxation structure
tax revenue provides governments with means of finance
lack of good governance:
corruption, political instability, unequal political power
political barriers to development:
legal systems and property rights
right to own assets
right to sell, benefit from, and establish assets
social barriers to development:
ineffective tax structure
banking system (rival banks in different countries)
ineffective tax structure:
tax revenue provides governments with means of finance
Means of development
is a process that creates growth, progress, positive change or the addition of physical, economic, environmental, social and demographic components.
Poverty trap (poverty cycles)
any linked combination of barriers to growth and development that forms a circle, thus self-perpetuating unless the circle can be broken
Capital fight
is the movement of large sums of money out of a country as a reaction to political or economic instability
Note 
Flashcard (28)