1. Developing Nations
Created by: Ms. Daniel 

2. 3 Stages of Economic Development
1. Agricultural
2.Manufacturing
3. Service Sector

3. Common Economic Traits of Developing Nations
Low Per Capita GDP
Limited Resources
Rapid Population Growth
Subsistence Agriculture
Manufacturing
Growing middle class

4. Obstacles to Economic Growth in Developing Nations
Rapid Population Growth
Lack of Natural Resources
Free Trade

5. Obstacles to Economic Growth
SCARCITY OF RESOURCES AND UNDERUTILIZATION OF TECHNOLOGY- lack of skill, natural resources, capital and technology
INADEQUATE ECONOMIC INFRASTRUCTURE- communication, roads, bridges, airports, water system
POLITICAL INSTABILITY
SOCIAL AND CULTURAL BARRIERS

6. Financing Economic Development
Domestic Savings
Banks and international Corporations
Foreign Aid- World Bank, International Monetary Fund, United Nations

7. Multinational Corporations and Developing Countries
Multinational Corporations are large corporations that produce and sell goods throughout the world

8. Reasons why a Multinational Corporation would go to a developing country
Lower production costs- natural resources and labor in many Lesser Developed Countries (LDC) are very cheap
Lower corporate taxes- often the LDC will offer a tax break to the MNC to encourage them to build a factory in their country
Avoid Trade Restrictions- many LDC do not have import quotas or protective tariffs
Expand their Market- widens the potential market for MNC’s products

9. Employment Opportunities for MNC and Developing Countries
Advantage
Creates new jobs for the local citizens and increase business for the local companies that provide goods for the MNC
Disadvantage
Can force local businesses to close down because they can’t compete with the wages paid by the MNC, some MNC build capital-intensive factories in a labor intensive country which do not help the standard of living for people in the country, many of the new jobs created by the MNC require few skills and are not in management positions

10. Economic Growth for MNC and Developing Countries
Advantages
Adds to the factors of production providing access to financial markets from around the world and creates a global market for domestic goods
Disadvantages
Can created a shortage of loan money if the MNC borrows from local banks which will result in the local bank not having enough money to loan to local businesses

11. Quality of Life for MNC and Developing Countries
Advantages
Higher unemployment, increase in national income, increase in standard of living, increase in tax money, improvement in infrastructure (roads, hospitals, bridges, schools…)
Disadvantages
Increase in pollution, increase in corruption, uneven distribution of wealth between rich and poor citizens