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The worlds poorest countries are at a competitive disadvantage in every sector of their

economies. They have little to export. They have no capital; their land is of poor quality;
they often have too many people given available work opportunities; and they are poorly
educated. Free trade cannot possibly be in the interests of such nations! iscuss.
Poor countries have no. of barriers for their national growth. Surrounding conditions make them
more dependable upon other countries for their common needs.
Characteristics of Poor Countries
Low capital: Industries are not developed. Less investor is available. Source of income of
citizens of poor countries are limited. The have less manufacturing units. !esources of countr
are underdeveloped or no developed: !oads" #lectricit" transports" etc. are not developed.
That$s wh setting up organization or doing investment is risk factors. Literac !ate is low:
Less people are educated thus we found less skilled labors. %ut at present stage both skilled
and unskilled labor are necessar for using good technolog and production.
!aw &aterials 'navailabilit: !aw materials are less available or unavailable. It ma be
gathered from distance sources that incur high e(penses. Poor infrastructure for production of
product ) services: *ue to undeveloped mode of ever sector " Production infrastructure is not
suitable. &arkets are not available: &arket for products are not available. People want low cost
product because the have less sources of income. Customers are less available for good
products: +igh ,ualit products are costl. The are not beared b customers because their
purchasing power is low. &ore dependent families: Less people earn and more people want to
consume. It means more people are dependent upon income generating members. Lands are
not suitable for agriculture: Lands are mostl barren due to poor irrigation sstem"
mismanagement of water" unavailabilit of modern agriculture methods application and tools"
etc. People depend upon still upon ancient irrigation sstem. Cheap labors are available: Labors
are easil available at low costs but the are mostl unskilled. So the are useless in technical
works or in high rated pro-ects.
Poor Technological *evelopment: *ue to poor infrastructure of !)* and unskilled emploees"
technological innovations ma not possible and even tuff task. .atural *isaster are bane: In the
time of flood" earth,uake" Tsunami" *raught" etc. People are becoming helpless. %ecause the
have not good rescue sstem and disaster control sstems available. Industries are also feeling
insecure due to heav losses. Poor +ealth sector: well in case of infection or viral desease the
have no good health services available so the infection of deseases are become high. *eath
rates increase. #.g. /frican countries are badl affected with such cases. &ost of the time the
depend upon '.0" 1+0 or other countries for help. *irt Political structure ) corruption rate is
high: &ostl in these countries" !ich persons dominate the politics. The e(ploit poor for their
own interests. 2or ever work bribes are re,uired Cross cultural %arriers: *ue to different
language and culture" %usiness adaptabilit in these countries are tuff. Less persons know
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international languages. #conomic development is low: It leads nation growth is low. 4*P and
per capita income are also low. /lso the value of currenc in these countries is low. 5udiciar or
Legal procedures are so comple(: Industries feel so uncomfortable due to length legal
procedures and sanctions. #(port are less : *ue to low production e(ports are less found but in
other hand imports are more because the are more depend upon neighbor countries for their
needs.
2ree trade is not possible: Custom duties" ta(es and other charges are main source of income
for countr. The import products from different countries and impose heav duties upon them.
That$s wh free trade is not possible. Comple( international trade procedures: These countries
make comple( their procedures and documentation to charge more duties from foreign
countries. That is not favorable for liberalization and globalization for international trade. Product
costs are high: *ue to heav custom duties" unavailabilit of raw materials and poor resources
condition like transport add e(tra e(pense. Thus final price of product become so high. That is
not affordable for ma-orit of customers. +*I is low and povert inde( is high: 0n that case. 1e
found that +uman development inde( of these countries are so low and povert inde( are high.
2indings : Poor countries have no. of barriers for their national growth. Surrounding conditions
make them more dependable upon other countries for their common needs. I have tried to
ad-udge through the characteristics and circumstances of these poor countries. Their conditions
are more critical in the time of natural disasters or epidemics. /ll the time the are depending
upon international blocks like '.0" 1+0" 1orld %ank" etc. These countries national debts are
so high and value of currenc is so low. It has been gained that free trade is not possible in
these countries due to these countries interest and legal difficulties generated b these
countries for their own profits. These circumstances make their life more critical because people
are unable to fulfill their needs due to high prices of products. That$s wh we found death rates
are high in these countries and living conditions of people are so low standard. That$s wh high
price products like cars" lifts" etc. are less sold in these countries.
Conclusion : Poor countries are still live in the old periods we can sa due to their problems.
Their was and concepts are old for business. The have no choices of free trade that$s wh
the impose heav duties upon imports of products. %ut their impacts are vice6versa upon these
countries people. %ecause that make more inabilit of persons while purchasing products due to
high prices. +uman resources have been e(ploited or treated unfairl b giving low
compensations and facilities. It is the matter of discontentment among emploees. Peoples
have been e(ploited b bureaucrats" politicians and wealth persons of these countries. Criime
rate is high and legal sstem is not much accountable. That leads to insecurit of firms"
warehouses" offices and other properties and goods of organization. 0utdated products are still
in emerging stages in these countries. So this is a good factor in case of import in these
countries. *ue to less market presence and less customers availabiit for their products and
services. *ue to Poor resources" low infrastructure" not favorable business environment and
high custom duties ) comple(ities of procedures in these countries" foreign firms and investors
are not willing to e(pand their trade and doing investment in these countries.
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