Question

Why are some countries so rich and others so poor? Need more detail.

Answer 1

There are three types of economy classified based on their GDP.The followings show the classification of the countries.

• Developed where National income of the countries are very high example the USA, UK, CANADA
• Developing, where national income is average level India, China, Brazil
• Under-Developed Countries where national income is very low example African countries, other countries.

The reason for rich and poor depending on how these counties able to utilize existing resource example the USA is developed because the resource is optimality utilized and productivity of the resource improved due to technological progress. Likewise, India and China are using existing labor force in their countries progress.

On the other hand, African countries unable utilize existing resource because of lack of technologies and social-cultural factors.