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industrial countries How do developing and industrial countries differ in their use of technological change, labor,      capital, and natural resources to produce economic growth?  Why do these differences exist?  

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Bruce Bergman eNotes educator | Certified Educator

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Hydrogen power automobiles are about to come onto the market but only a handful of countries (Germany is one of them) have decided to build the facilities/infrasctructure to make these cars viable as products. Hydrogen fueling stations need to be built in order to these vehicles to be truly usable. 

The US, Canada, and Brazil are just a few of the countries that use cars to quite an extension degree yet do not seem to be moving to incorporate hydrogen fuel cell technology for automobiles. 

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Think of industrial as machine. An industrial economy is more advanced, because everything is technologically based. A developing country is not going to have technology, and will produce less efficiently, and will ultimately produce much less in general.

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Robert C. Evans eNotes educator | Certified Educator

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Developing countries tend to have under-developed legal systems, thus making graft and corruption more likely. Developed countries tend to have long-established and stable legal systems, thus tending to decrease the amount of graft and corruption.  Partly for this reason, the economies of developed countries are more efficient, productive, reliable, and trustworthy.  Developing countries also often tend to have unstable political systems.

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You might like to consider the development of China in response to this question. Although now the Asian Tiger Economy is certainly something to be respected and not underestimated, prior to this China was able to develop so rapidly thanks to the massive labour force it had at its disposal. The huge population meant that there were more workers that were able to push China towards its goal of becoming an industrialised nation.

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Often the developing world, without the capital to develop their own natural resources, and often times are forced/choose to make development deals with the industrial world, often receiving a fraction of their real value and are therefore typically unable to develop long term, sustainable economic diversification before those resources are exhausted.

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Developing countries tend to use more labor and more natural resources while industrial countries use more capital and technology.  This difference exists because that is what each type of country has in relative abundance.  Developing countries need to rely on labor and natural resources because they simply don't have the money , education, etc, that is needed to have more capital-intensive, technologically advanced economies.

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