What two obstacles do less developed countries face? How do they approach development?

Geography

1 answer:

Kaylis [27]3 years ago

8 0

Answer:

<em>Developing countries two major issues, of low incomes and eventually lower tax collections.</em>

Explanation:

Obstacle 1: Developing countries usually have a population with a low income. There are a lot of poor people, very few businesses are documented and there are very few well established larger corporations.

Obstacle 2: Lower income results in a low tax collection for the country. This means that the government is not able to meet its basic infrastructure resulting in underdeveloped health facilities and basic infrastructure.

In order to improve this, they look for either foreign direct investment into their country or take out loans from international banks to fund basic needs.

If done well, countries can escape from poverty. However if loans are mismanaged, countries can quickly find themselves burdened with rising debt and more poverty.

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