Question

Describe the main differences between the economies of cities in developing and emerging countries and economies in developed countries

Answer 1

Developed countries refer to those nations who have advanced economies, such as Australia, United States, Japan and South Korea.

On the other hand, developing or emerging countries are those that belong to the third world economy, like the Argentina, Brazil and the Philippines.

The differences between these two can be identified based on the following:

1. Per capita income

A developed country has a general per capita income of around or above $12,000.00 and an average of $38,000.00. 

On the other hand, developing nations are characterized by having the lowest income, with a general per capita income of less than $1,000.00 and an average of about $500.00 or lower. 

2. Population 

The population of developed countries are generally more stable with a growth rate of around 7% over the next 40 years.

Meanwhile, developing countries can be associated with its burgeoning population.

3. Unemployment and Poverty

Economies in the developed countries are much better, thus, they have lower unemployment and poverty incidence than the developing countries.

4. Mortality rate

Developed countries also tend to have lower mortality rate as they have more access to technological and medical interventions than their developing counterparts. 

5. Sector that generates revenue

Developed countries generate revenue from their industrial sector, while the developing countries rely heavily on their service sector.

6. Standard of living

Standard of living in developed countries is higher than in the developing countries.

7. Literacy

Because of low poverty incidence in the developed countries, they are also expected to better allocate their resources and invest in education. Thus, literacy rate in developed countries are also much higher than the literacy rate in the developing countries.