Comparative Advantage
to “development”
b. foreign aid does more harm than good and should be stopped immediately
c. developing countries need to focus on the development of their service sectors, and not just manufacturing sectors
d. large-scale technological projects are needed to industrialize the South
Essay: Choose ONE (10 points)
1. What causes Balance of Payments Disequilibria? Why is this a problem for the Third World?
2. Consider the HIPC Initiative and the Year of Jubilee. What do you think would happen if they were fully realized?