Question

Does the position of rich countries as giants in the economic chain threaten the status
of less developed countries in the global market?

Answer 1

Answer:

No

Explanation:

The existence of the whale does not threaten the existence of the anchovy, or the existence of the elephant does not threaten the existence of the ant. Why? they have their own spaces of existence. The false analogy of some presumed chain where the elephant tramples over the ant is false because it draws upon an exception as a rule.

Actually, large economies have positive externalities to the advantage of the small ones. Some nations are too small to have viable industries to make passenger airplanes or big ships or advanced medicine and high-tech equipment. Some are too small even to afford a world-class university or hospital. The existence of the large nations allows them to benefit from the technological progress made by the big ones. The Maldives, for example, cannot hope to set up their own aviation industry to make passenger airplanes. But she can surely buy a few planes made by the big producers, who sell planes by the thousands. This is just the economy of scale There are many other things besides the economy of scale to help the smaller nations. The small nations can hope to grow by selling to the enormous markets of the large countries.

Answer 2

No, the position of rich countries as giants in the economic chain doesn't threaten the status of less developed countries in the global market.

• The multiple interdependencies that exist between industrialized and developing nations help to limit the risk of overwhelming.
• Large wealthy economies have positive externalities as compared to small ones. This is usually due to economies of scale, as well as the external benefits of a well-educated staff and technological know-how.
• These massive economies, on the other hand, allow the latter to benefit from the former's technological achievements. A process of technical innovation diffusion is continually under progress.
• Less developed countries gain from economies of scale as well as the avoidance of having to engage in the potentially dangerous production of new technologies.
• Exports to bigger nations can assist smaller, less developed countries since these countries have massive markets for products and services, particularly consumer goods.
• Every country has its own demographic and industrial mix, with people with varying objectives, resources, abilities, and values, as well as varying production components including natural resources and climatic circumstances.
• Distance between nations, the requirement to transport commodities and services, and the need to gather, reorganize, and distribute these goods and services all contribute to the depth and breadth of economic expansion.