1. ASSIGNMENT BUSINESS ENVIRONMENT

2. TOPIC Q.2 -Developed and underdeveloped countries and their growth prospects.

3. WHAT IS ECONOMIC DEVELOPMENT ? act or process of growing or creating something over a period of time. act or process of growing or creating something over a period of time. It implies an increase in the per capita income of every citizen It implies an increase in the per capita income of every citizen adoption of new technologies and innovations. adoption of new technologies and innovations. transition from agriculture-based to industry-based economy transition from agriculture-based to industry-based economy general improvement in living standards. general improvement in living standards. Movement from rural to urban areas and the achievement of worldwide communities via satellite and jet travel Movement from rural to urban areas and the achievement of worldwide communities via satellite and jet travel creation of more opportunities in the sectors of education, healthcare, employment and the conservation of the environment. creation of more opportunities in the sectors of education, healthcare, employment and the conservation of the environment.

5. Causes of economic growth

6. PROBLEMS OF DEVELOPMENT TODAY  Structural constraints to development  Geography  High economic poverty  Hunger  High mortality rates  Unsafe water supplies  Poor education system  Corrupt governments  War  Poor sanitation

7. The following points highlight the four important sources of economic growth of a country Human Resources: Labor inputs consist of quantities of workers and of the skills of the work force. Natural Resources: The important resources here are arable land, oil and gas, forests, water, and mineral resources. Capital Formation: structures like roads and power plants, equipment like trucks and computers, and stocks of inventories. Technological Change and Innovation: technological advance has been a vital fourth ingredient in the rapid growth of living standards. innovation requires the fostering of an entrepreneurial spirit

9. EXAMPLES Current examples of highly developed countries include Norway, Australia, Switzerland, Germany, Singapore, Canada, Netherlands, Denmark, Hong Kong, Sweden, United States, Ireland, United Kingdom, New Zealand, Japan, France, Italy, Belgium and South Korea. Other countries that appear on most lists of developing countries include: Argentina, Chile, Malaysia, Mexico, Pakistan,The Philippines, Thailand, Turkey, Ukraine. Current examples of highly developed countries include Norway, Australia, Switzerland, Germany, Singapore, Canada, Netherlands, Denmark, Hong Kong, Sweden, United States, Ireland, United Kingdom, New Zealand, Japan, France, Italy, Belgium and South Korea. Other countries that appear on most lists of developing countries include: Argentina, Chile, Malaysia, Mexico, Pakistan,The Philippines, Thailand, Turkey, Ukraine.

10. Infrastructure Foundational services that improve the efficiency of an economy such as an internet backbone Education Institutions, systems, tools and facilities that support the acquisition of knowledge and skills. Health & Wellness Healthcare such as hospitals and wellness programs such as after-school sports programs Justice An open and fair system of law provided by law enforcement, administrative bodies, courts and other systems such as a human rights tribunal. Fairness is key, a justice system that isn't perceived as fair can hinder economic development.

11. Safety The systems that make people feel they live in a safe and stable environment including areas such as crime prevention, disaster preparedness and information security. Human Rights Principles and frameworks that guarantee human rights such that people are free to pursue happiness. For example, a constitution that is upheld by the branches of government. Fair Competition Bodies that ensure free competition to prevent anti-competitive practices that inhibit the efficiency of markets. Markets Markets for securities, assets, goods and services that are fair, efficient and liquid. Finance Stable, reputable and efficient financial institutions and systems. For example, a nation where it is easy to get a loan when you are reasonably likely to pay it back. Political Stability A fair system of politics such that a population has trust in its leaders and administrators and feel that things are always getting better.

12. Culture Preservation of the things that people value such as architecture, art, performance art, literature, festivals, rituals and pastimes. Support for creative pursuits and cultural industries. Transportation A transportation system that is accessible and efficient in terms of both time and money. Energy A system of energy production and distribution that provides ample energy without polluting the environment Water Infrastructure that provides a region with water security such as infrastructure for groundwater recharge. Food Food security such as a region that grows much of its own food including a diversity of crops.

13. Industrial Base A developed industrial sector with capabilities to manufacture a significant variety of complex products. Service Economy Developed economies are undergoing a shift whereby services are an increasingly large component of economic output. As such, the transition from an industrial economy to a service economy can be viewed as a modern form of economic development. Knowledge Economy A shift to jobs that require and produce significant knowledge such as medical research or software development Experience Economy Products and services that compete at the level of customer experience such as a video game or resort hotel. Public Space Public space such as a city filled with pleasant blue and green spaces.

14. Consumer Protection Regulating the quality, commercial terms and safety of products and services. For example, a system that ensures that food products are safe and healthy. Information Technology Technology companies, IT infrastructure and a significant pool of people who are knowledgeable about technology such as software developers and architects. Research Research and related things such as science facilities, universities and a space program Community Elements of a nation or city that create a shared experience such that people identify with each other and don't become isolated. For example, a popular local sports team that draws locals together.

15. Sustainability & Resilience A nation that has systems and practices designed to endure time and stresses. For example, industries that don't create harmful waste or consume excessive resources.