Asked by Areli Hernandez on Jul 24, 2024

verifed

Verified

Which of the following is considered to be a severe obstacle to economic growth for DVCs?

A) low trade barriers
B) large international debts
C) an increase in the rate of saving
D) a slowing of population growth

International Debts

Financial obligations owed by one country to foreign lenders, which can include governments, corporations, or international financial institutions.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, often measured as the percentage increase in real gross domestic product (GDP).

Trade Barriers

Measures implemented by governments to regulate international trade, such as tariffs, quotas, and import bans, which can protect domestic industries.

  • Understand the barriers to economic growth in developing countries, including trade barriers and international debt.
verifed

Verified Answer

GS
Gursimran singhJul 29, 2024
Final Answer :
B
Explanation :
Large international debts are considered to be a severe obstacle to economic growth for DVCs as they create a burden of repayment and may lead to default or restructuring, which can further discourage foreign investment and exacerbate economic instability. Low trade barriers and a slowing of population growth can actually encourage economic growth, while an increase in the rate of saving can also have positive effects on investment and capital accumulation in the long run.