Economic Development

• Explain how international trade and trade policy helped South Korea transform itself from an

underdeveloped country to a high income country in the space of a single generation. You might begin by

discussing South Korea's trade strategy. Why do you think international trade is of such vital importance

to South Korea?

• State three major potential advantages of foreign direct investment for a developing country. State three

major potential disadvantages.

• What are the major market failures that imply a potential role for state intervention in financial markets?