Why are some countries rich and some poor? Educated responses please!?
Answer:
Each country produces a certain amount of material goods which have a value on the world market based upon how much the buyer is willing to pay without either doing without or purchasing elsewhere.
Each country uses a certain amount of the material goods it produces for internal consumption.
The difference between the two is how much foreign currency the country can earn.
Each country needs to buy materials from outside which it cannot produce itself. If the money earned from selling excess production is more than the money they need to spend on foreign materials the country has spare money for other things. If not they have no spare money and either have to borrow or do without where that is possible.
Rich countries can afford to manipulate the markets to increase their wealth at the expense of poor countries. This prevents the development of poor countries due to lack of financial resources and keeps them poor so that they cannot compete with the rich countries on equal terms. This is what the Americans refer to as a level playing field.
Many poor countries are potentially rich but they are starved of the resources necessary for them to develop wealth because this would disturb the status quo.
this sounds more like a social studies question, then economic question..
its mainly in the leadership of countries, some countries are in wars, some in political struggles, some with corruptions that's preventing the masses from benefitting from reforms, some due to their natural resources (oil), some due to the policies set in place by their own government..
i dun see any economic side theories to explain for the occurance, if someone can think of any, i will like to know too!
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