Chapter 17, Problem 1SQP

To determine

Differentiate industrially advanced countries (IAC) and less developed countries (LDC).

Explanation of Solution

Industrially advanced countries (IAC) have high income or high per capita GDP. The production in IACs is based on technologically advanced capital and educated labor. The most developed countries like United Nations, Canada, Australia, New Zealand, Japan, and most of the Western European countries are the examples of IACs. Countries which have high income but low industrial development like United Arab Emirates cannot be considered as IACs.

Less developed countries (LDC): The countries which are not included in IACs are categorized as less developed countries. The less developed countries are low income nations that are produced without advanced technology of capital and educated labors. Economy based on agriculture, poverty, and so on is the main features of LDCs. Countries like Nigeria, Angola, Congo, Sudan, Zimbabwe, and so on are some examples of less developed countries (LDCs).

Economics Concept Introduction

Industrially Advanced Countries (IACs): IACs are the industrialized countries which will be advanced socially, technologically, and in infrastructural sectors compared to the developing countries.