self-sufficiency
Self Sufficiency is also considered the Balanced Approach. According to this approach, a country shoudl spread investment as equally as possible across all sectors of its economy and in all regions. All residents share the benefits of development through this approach.
Countries promote self sufficiency by setting varriers that limit the import of goods from other places.
Problems With The Self Sufficiency Alternative
-Inefficiency
-Large Bureaucracy
International trade: rostow's development model
Rostow's Development Model
Open the Models of Economic Development.ppt to review the Development Models
Financing Development
Many less developed countries lack the money to trade on large scales and create an increase in standard of living for its citizens.
Less Developed Countries gain money from two sources:
1. Loans
2. Transnational Corporations