Question

The growth experience of Taiwan illustrates that relatively poor countries can rich countries. What is the primary reason for this? Rich countries devote a large fraction of their GDP to helping poor countries. Copying existing technologies is less expensive than developing them independently. Poor countries tend to have higher birth rates than rich countries.

Answer 1

Answer:

Copying existing technologies is less expensive than developing them independently

Explanation:

Taiwan was a country that was poor when it formed. The country though quickly developed and in just few decades became a developed country itself, with strong economy and high standard of living. The main reason why Taiwan was able to achieve this in such a short period was that it focused on modernization of the country, using the already developed technology in the West. Since Taiwan was using already developed technology, it was not using its finances to develop its own technology, so the economy was just getting income, without investing in technological development.