Development Of The Post World War Ii Economy

IntroductionSome economies in the world are more genuine than new(prenominal) economies There are many reasons wherefore economies that were at per in terms of outgrowth after world war 2 see different levels of frugal reading . One of the reasons that testament be discussed in this is the availability of natural imaginativenesss for using , jibe to Robert Solow in that location are those economic resource factors and as well the non-economic resource factors that lead to economic developmentEconomic factors imply capital accumulation , engineering , foreign aid inter internal sight , natural resources and presidential term expenditure . He br non-economic resource factors include home(prenominal) environment , rules and regulation and peoples cultural valuesThis also states the economic theories that rationalize why post world war both economies have differing development levels . Some of the theories that will be discussed in this include the classical opening , mercantile theory and the growth pointedness theory by RostowThe classical theoryThe classical theory of development was genuine by a number of classical idealogue , they include Adam Smith , David Ricardo , Thomas Mathus and John lallygag . This theory states that economic development will be achieved when there is capital accumulation , the capital accumulation of a body politic will depend on savings and investmentThis theory states that the developed countries today embarked on capital accumulation through support investment and saving and that is why they are more developed than others are .

For these reason post world war two economies have differing developmental levelsThe theorist also stated that trade plays a major occasion in economic development and growth , through trade , economies are able to receive wealth and therefore they advocated for free and fair trade and also favorable terms of trade , all this has rendered the developed countries to be the way they are todayThe mercantile theoryThe mercantile theory explains why major economies in the world have achieved proud levels of economic growth while other economies still lag nooky in terms of development , the principle of the mercantile theory was that economies had the desire to make their state more stronger , the need to sustain the state was only through economic growth and development , therefore economies embarked on this desire and they have now achieved high levels of developmentThe political policy of the mercantile was the need to increase the national political power , which was to be symbolized by political aright , and this was to be achieved through economic development . The economies much load to gilded , how to acquire it and retain it they also considered trade as a source of gold and therefore the economies engaged in trade and acquired gold and then gave much value to the gold they acquiredThe theory also states that colony played a role in the development of these developed economies , the new territories acquired were source of primitive materials for their industries , source of cheap labor and slavery , and finally these territories were subsequent to b e captive marketsTherefore , the countries that engaged in colonization and also trade are...If you want to get a upright essay, order it on our website: Orderessay

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