Which of the following is a characteristic of an LDC?
A) Capital flight.
B) Vicious circle of poverty.
C) Lack of entrepreneurs.
D) All of these.

Question

Quizplus · Accepted Answer

All of these are characteristics of a Less Developed Country (LDC). Capital flight refers to the situation where investors and foreign companies withdraw their capital and resources from a country due to political instability, economic uncertainties and a lack of secure legal system. Vicious circle of poverty refers to the process where poverty leads to low productivity, low income, and low purchasing power and hence further poverty. Lack of entrepreneurs indicates the absence of innovation, risk-taking, and private investment that can stimulate the economy and create jobs.

Which of the Following Is a Characteristic of an LDC