Why are countries LEDC

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  • Created by: Jessica
  • Created on: 21-04-12 17:37

Profits leaking over seas - Foreign investments creates jobs but takes all the money. Shortage of skills in poor countries mean foriegn workers get better jobs.

Shortage of capital - Lack of money for investment (capital) is a major barrier to development in many poor countries. Capital is essential if these countries are to exploit their natural resources, improve their agriculture, develop new industries or pay for roads, airport, schools and hospitals.Capital comes from large foreign companies and transnational or borrowing money from banks in economically developed world.



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