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Hat two methods can a less developed country use to finance its economic development?

User Raulk
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Those two methods are :

- Search for Foreign Investments, since there is not enough source of capital in the developed countries, they have to gain the capitals they need from the more advanced countries

- Debt Rescheduling, so they can use the money to build their infrastructure first
User Ady
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The term developing countries is used when referring to the subgroup of underdeveloped countries that have shown significant growth, both in economic aspects and in social indicators. These nations may also be referred to as emerging countries. In general, developing countries are called those that, although they are peripheral countries, have reached a level of industrialization greater than the others, and therefore have expressive values ​​of GDP.

To increase economic power, these countries can:

  • Establish international economic relations: Developing countries can provide some kind of material to developed countries to establish a buying and selling relationship between them. Using Brazil as an example, it was inserted in the international economy as a simple supplier of raw materials, in short, a few, which kept it practically until a recent period of its international economic history in this situation. This is because the cycles of products such as brazilwood, coffee, sugar, gold and rubber that represent the country's economic history provided their own incorporation into the world economic system. This scenario was one of the factors that led Brazil to become a part of the international economic system, which, together with its internal factors, became one of the vectors of its economic relations with the other world powers at the end of the 19th century.
  • Borrowing from developed countries: A country may borrow or borrow from another country to move the national economy. The problem with this strategy is the increase in the country's external debt, which must create means of repaying loans and interest rates without scrapping the local economy.

User AChampion
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