________ cause a major drawbacks to money borrowed previously.
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Capital fight
________: is the movement of large sums of money out of a country as a reaction to political or economic instability.
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High income inequality
________ can be a barrier to growth and development for a number of reasons.
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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.
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Price elasticity of demand
________ for commodities and price elasticity of supply commodities to be relatively inelastic.
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Corruption
dishonest exploitation of power for personal gain
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landlocked countries
those surrounded by other countries with borders, trade less and have slower growth rate
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ineffective taxation structure
tax revenue provides governments with means of finance
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lack of good governance:
corruption, political instability, unequal political power
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political barriers to development:
legal systems and property rights
right to own assets
right to sell, benefit from, and establish assets
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social barriers to development:
ineffective tax structure
banking system (rival banks in different countries)
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ineffective tax structure:
tax revenue provides governments with means of finance
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Means of development
is a process that creates growth, progress, positive change or the addition of physical, economic, environmental, social and demographic components.
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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
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Capital fight
is the movement of large sums of money out of a country as a reaction to political or economic instability
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Flashcard (20)