Introduction There is a great diversity among the developing countries in terms of their income per capita Why are some countries so much poorer than others? For about 30 years after World War II trade policies in many developing countries were strongly influenced by the belief that the key to economic development was creation of a strong manufacturing sector The best way to create a strong manufacturing sector was by protecting domestic manufacturers from international competition Copyright C 2003 Pearson Education, Inc Slide 10-3Copyright © 2003 Pearson Education, Inc. Slide 10-3 ▪ There is a great diversity among the developing countries in terms of their income per capita. ▪ Why are some countries so much poorer than others? • For about 30 years after World War II trade policies in many developing countries were strongly influenced by the belief that the key to economic development was creation of a strong manufacturing sector. – The best way to create a strong manufacturing sector was by protecting domestic manufacturers from international competition. Introduction