Developing countries competing with developed countries Discuss alternative methods that developing countries could use to overcome the difficulties they face when trying to compete with developed countries developed. No industries attracted, including foreign direct investment (FDI) Economic development occurs when a country improves the economic well-being of its people, for example by reducing poverty. Some economists view the world as the “developed North” and the “underdeveloped South.” This is the gap between rich countries, located mainly in the northern hemisphere, and poor countries, located mainly in the southern hemisphere. This is not the only method used to classify countries: the World Bank and the United Nations classify countries as high, middle and low income, while the International Monetary Fund (IMF) classifies countries as least. advanced, developing and industrialized. I believe many underdeveloped countries are involved. in the “cycle of deprivation”, which I have sketched above. If there is little investment in a country, it is easy for the country to get caught up in the cycle and make the economy worse off. If a developing country (less economically developed country) has little money, the country will undoubtedly have poor infrastructure, which will discourage industry from setting up in the region because transport and communications will be poor and will cause problems for businesses. If few industries are attracted, there will be no jobs available and unemployment will skyrocket. As described in more detail below, some multinational corporations take advantage of cheap labor in LEDCs, but because they pay very low wages, very little is invested in the economy and the majority of profits leave the country, there is therefore no significant increase in investments. If unemployment is high, people will turn to subsistence farming because they will need to produce food to survive, so farmers will not make money and therefore will not invest in the economy. If there is little investment in the economy, there will be little money available to the government, so health, education and infrastructure will not improve and there is little chance that the he economy grows without outside intervention, as I will describe later. ...... identifier. The latter requires the recipient to purchase goods and services from the donor country. The World Bank and the IMF (International Monetary Fund) provide loans to developing countries aimed at improving their infrastructure, education and health services, restructuring their economies and coping with global supply and supply shocks. the request. I think this policy can again either greatly benefit a country if used wisely or create even more problems for the economy. To conclude, I believe that it is very difficult for developing countries to compete with developed countries globally because they are at a disadvantage in this area. lots of respect. I believe that the best way to increase the competitiveness of developing countries is to increase the development of these countries and increase investments, which often requires external assistance. I believe that developing countries can overcome the disadvantages they face by planning and successfully using some of the policies mentioned above. The third world should not be alienated but welcomed into the global market, and only then will it no longer feel so intimidated by the prospect..