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Question 6From an economic perspective, the world comprises two types of countries: developed and developing. The bulk of the develop counterparts are in Europe and North America. For some reason, their developing peers mostly concentrated in Africa, Asia, and Latin America have found it difficult to break into the developed or industrialized club. The following presents a breakdown of the reasons behind this astonishing state of affairs. Expansive informal sectorThe rapidly expanding informal sectors in developing countries could signal economic growth in the sense that households exhibit creativity and efforts to increase income. However, this factor alone ranks among the top reason behind the stagnation of developing countries. It has proven almost impossible to tax operators in the in...
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