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Answer:
Colonizing countries were pioneer to acquire Industrial revolution, master in sea navigation and technological development. Colonized countries were deficient in above features.
Explanation:
European countries were colonizing countries such as Britian, Spain, Portugal and so on. Asian, African and American countries were colonized countries under European powers. Many European countries were witnessed the Industrial revolition in mid 18th century but colonized countries were exporters of raw materials and consumer of finished goods till their decolonisation. There is no technological and infrastructural development in colonised countries whereas colonial powers were superior in science, arts, literatures and so on.
The transition economy might have problems with rising unemployment, inflation, lack of entrepreneurship and skills, corruption, lack of legal system, moral hazard and inequality. With these problems that the transition economy will have, it might turn foreign investors and will not invest.
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