Question

What would be the most important reasons why some countries or regions find it so difficult to become developed? Justify your opinions.

Answer 1

Many developing countries from Middle East to South America have attempted to master the process of development but have failed.

And one of the major reasons behind this is "Domestic Monopoly Power." Most of these countries are trapped in their local markets and do not open their markets internationally.

Domestic group interests have small incentives to open up their markets to international firms with advanced technologies.

However, if they even try to open their borders, they still remain trapped in low or middle levels of income.That's why poor countries remain poor over the period of time.