Quiz 9: Economic Development and the Americas

Business

Definition of various terms including economic development, newly industrialized countries (NICs), infrastructure, big emerging markets (BEMs) are given below: Economic development: It refers to the rapid economic growth of a country in terms of its GDP as well as increase in the consumer demand. Newly industrialized countries (NICs): NICs includes the countries that experience rapid industrialization of some targeted industries. Furthermore, countries involved in NICs also experiences rapid expansion of their economy. Infrastructure: The capital goods that are capable of serving various activities of different industries are termed as infrastructure. Infrastructure plays a crucial role in determining the economic development of a country. Big emerging markets (BEMs): BEMs include the markets that are physically large having significantly larger population. Such markets have huge potential for growth and profits. Furthermore, they have significant market demand for wide variety of products and services. BEMs have the capacity to act as an economic as well as political driver within a region.

GNP (Gross National Product) stands for the market value of all the goods and services produced in a country in a particular year. The products and services are produced by the labor and property supplied by the citizens of that country. It is not possible for an economy to experience economic growth as measured by total GNP without commensuration rise in the standard of living. This is because GNP is the total market value of the goods and services produced in a country in a particular year, and when there will be an increase in the GNP of the country, the standard of living of the residents of the country will also get affected. This is the reason why the standard of living of the residents of the country is calculated and its effect is measured when an economy experiences economic growth. Thus, on the basis of above mentioned points it could be calculated that it is not possible for an economy to experience economic growth as measured by total GNP without commensuration rise in the standard of living. The basic reason behind this is that there exists a direct relationship between GNP and standard of living of the population of a particular country in a year.

Technical assistance programs stands for the program that are undertaken by the country's economy for measuring its development and economic growth. These programs suggest measures to stabilize continuous growth and provide for remedial measures to soothe the defects in the economy. It is mentioned that technical assistance programs by more affluent nations typically ignore the distribution problem or relegate it to a minor role in development planning. This is because when the economy of a country reaches towards growth, it becomes obvious that there would be effective and justified distribution of the benefits and services entitled for the country's population. This is the reason why technical assistance programs by more affluent nations typically ignore the distribution problem or relegate it to a minor role in development planning. It is also the fact that the advanced and growth economy is not concerned about the distribution problem because proper and effective distribution policy already exists in the technical assistance programs drafted by the country. This policy acts as the guideline to distribute benefits and services to the population in an effective manner without much issues and planning. Thus, on the basis of above mentioned points it is concluded that technical assistance programs by more affluent nations typically ignore the distribution problem or relegate it to a minor role in development planning.