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Critically evaluate the following statement:

Both economic theory and history suggest that less developed countries that open their economies to international trade and capital flows will grow faster and reduce poverty more quickly than those opting for an import-substitution industrialization development strategy.

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Both economic theory and history suggest that less developed countries that open their economies to international trade and capital flows will grow faster and reduce poverty more quickly than those opting for an import-substitution industrialization development strategy.

Less developed countries that open their economies to international trade and capital flows grow faster. To an extent this statement is correct; the GDP growth of the country shows a high growth rate. How does this growth take place? Developed country based multinationals source their products from less developed countries, however, they pay very low wages to the ...

Solution Summary

international trade is discussed very comprehensively in this explanation..

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